We are evaluating a project that costs 1 694000 has a


We are evaluating a project that costs $1, 694,000, has a seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 88, 700 units per year. Price per un is $35.10, variable cost per unit is $21.35, and fixed costs are $767,000 per year. The tax rate is 40 percent, and we require a return of 12 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within plusormius 10 percent. Calculate the best-case and worst-case NPV figures. (A negative answer should be indicated by a minus sign. Enter your answers in dollars, not millions of dollars, e.g. 1, 234, 567. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16)

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Financial Management: We are evaluating a project that costs 1 694000 has a
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