Calculate the best-case and worst-case npv figures

Reference no: EM13262993

We are evaluating a project that costs $924,000, has an eight-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 75,000 units per year. Price per unit is $46, variable cost per unit is $31, and fixed costs are $825,000 per year. The tax rate is 35 percent, and we require a 15 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent.

Calculate the best-case and worst-case NPV figures.

Reference no: EM13262993

Questions Cloud

Determine the final speed of the two-object system : One object is at rest, and another is moving. The two collide in a one-dimensional, completely inelastic collision. Determine the final speed of the two-object system

What about the worst-case scenario : What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario?

How much of that fm signal power finds way into clock radio : A typical commercial FM broadcast signal starts out at an effective power level around 100 KW (+80 dBm). How much of that FM signal power finds its way into the clock radio on your nightstand, or the radio in your car's dash

Find the pressure of the gas remaining in the tank : Gas is confined in a tank at a pressure of 12.6 atm and a temperature of 23.0°C. what is the pressure of the gas remaining in the tank

Calculate the best-case and worst-case npv figures : Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent.

What determines minimum firing angle at the rectifier side : 1.The Thyristor is a natural commutation device. What does that mean. 2.Mention two reasons why the HVDC might be your choice as a power system designer to transfer large amount of power.

How much will she have to invest annually to reach : She can invest a certain amount at the beginning of each of the next four years in a bank account that will pay her 6.8 percent annually. How much will she have to invest annually to reach her target?

Find the equation of motion for small displacement : Consider the particle that is constrained to move along a curve described by y = x4. Find the equation of motion for small displacement about equilibrium

What do you think about the dilemma facing mark miller : what do you think about the dilemma facing mark miller? Does this case present an ethical issue? if so, to which party or parties? if you could act as the ultimate authority in this situation, what would you do?

User Account

All Pages