Suppose unit variable cost estimates are good

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Reference no: EM13970860

Project Parameters Capital Investment $1,675,000 Life 6 years Depreciation S/L to $0 Projected Unit Volume 91,000 Unit Variable Cost $21.40 Unit Price $35.95 Annual Fixed Costs $775,000 Tax Rate 35% Required Return 11% Questions 1. Suppose unit sales estimates are accurate to within +/- 500 units. How would this change NPV estimates? 2. Suppose Unit Variable Cost estimates are good to within + / - $1. How would this change OCF estimates? NPV estimates?

Reference no: EM13970860

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