Projections given for price-quantity-variable costs

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We are evaluating a project that costs $855,000, has an ten-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 121,000 units per year. Price per unit is $41, variable cost per unit is $26, and fixed costs are $858,420 per year. The tax rate is 32 percent, and we require a 17 percent return on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 15 percent. Calculate the best-case and worst-case NPV

Reference no: EM13915470

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