We are evaluating a project that costs 1058174 has a


We are evaluating a project that costs $1058174, 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 43947 units per year. Price per unit is $48, variable cost per unit is $20, and fixed costs are $823846 per year. The tax rate is 37 percent, and we require a 9 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-8 percent. What is the NPV of the project in best-case scenario? (Negative amount should be indicated by a minus sign. Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: We are evaluating a project that costs 1058174 has a
Reference No:- TGS02333133

Expected delivery within 24 Hours