Evaluating project that costs

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We are evaluating a project that costs $739,000, has an 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 134,000 units per year. Price per unit is $44, variable cost per unit is $25, and fixed costs are $741,217 per year. The tax rate is 32 percent, and we require a 12 percent return on this project.

Reference no: EM13944550

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