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Require a return of 10 percent on project

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We are evaluating a project that costs$864,000, has an eight-year life, and has no salvage. Assume that deprecition is striaght-line to zero over the life of the project. Sales are projected at 71,000 units per year. Price per unit is $49, variable cost per unit is $33, and fixed costs are $765,000 per year. The tax rate is 35 percent, and we require a return of 10 percent on this project. Please show each step.

Reference no: EM132342133

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