What are the upper and lower bounds for the projections

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You are considering a new product launch. The project will cost $2,050,000, have a 4-year life. and have no salvage value; depreciation is straight-line to 0. Sales are projected at 170 units per year; price per unit will be $26,000: variable cost per unit will be $15,000: and ?xed costs will be $560,000 per yeah The required return on the project is 15%, and the relevant tax rate is 30%.

Based on your experience. you think the unit sales, variable cost. and fixed cost projections given here are probably accurate to within $1096.

Problem 1: What are the upper and lower bounds for these projections?

Problem 2: What is the base-case NP‘?

Problem 3: What are the best-case and worst-case scenarios?

Reference no: EM132664662

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