You are considering a new product launch. The project will cost $1,192,500, have a five-year life,...

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You are considering a new product launch. The project will cost$1,192,500, have a five-year life, and have no salvage value;depreciation is straight-line to zero. Sales are projected at 230units per year; price per unit will be $18,500, variable cost perunit will be $15,000, and fixed costs will be $321,000 per year.The required return on the project is 13 percent, and the relevanttax rate is 30 percent.
Based on your experience, you think the unit sales, variablecost, and fixed cost projections given here are probably accurateto within ±10 percent.
What are the best-case and worst-case NPVs with theseprojections? (A negative answer should be indicated by aminus sign. Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)
NPV_best $
NPV_worst $
What is the base-case NPV? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)
NPV_base$
What is the sensitivity of your base-case NPV to changes infixed costs? (Input your answer as a positive value. Do notround intermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)
For every dollar FC increases, NPV falls by $ .

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You are considering a new product launch. The project will cost$1,192,500, have a five-year life, and have no salvage value;depreciation is straight-line to zero. Sales are projected at 230units per year; price per unit will be $18,500, variable cost perunit will be $15,000, and fixed costs will be $321,000 per year.The required return on the project is 13 percent, and the relevanttax rate is 30 percent.Based on your experience, you think the unit sales, variablecost, and fixed cost projections given here are probably accurateto within ±10 percent.What are the best-case and worst-case NPVs with theseprojections? (A negative answer should be indicated by aminus sign. Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)NPVbest$NPVworst$What is the base-case NPV? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g.,32.16.)NPVbase $What is the sensitivity of your base-case NPV to changes infixed costs? (Input your answer as a positive value. Do notround intermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)For every dollar FC increases, NPV falls by $ .