How the npv new and change in npv is calculated

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We are evaluating a project that costs $644,000, has an eight-year life, and has no salvage value. Assume that the depreciation is straight-line to zero over the life of the project. Sales are projected at $70,000 units per year. Price per unit is $37, variable cost per unit is $21, and fixed costs are $725,000 per year. The tax rate is 35%, and we require a 15 percent return on this project.

I don't understand how the NPV new and change in NPV is calculated.

Reference no: EM13980727

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