What are best and worss cases for these projections

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You are thinking about a new product launch. The project will cost $1,750,000, have a four=year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 190 units per year; price per unit will be $17,300, variable cost per unit will be $10,400, and fixed costs will be $515,000 per year. The required return on the project is 12 percent, and the relevant tax rate is 35 percent. Based on your experience, you think the unit sales, variable cost and fixed costs projections given here are probably accurate to within ±10 percent.

(a) what are the best and worss cases for these projections?

Reference no: EM131360847

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