What are the upper and lower bounds for the projections

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A project under consideration costs $500,000, has a five year life, and has no salvage value. Depreciation is straight line to zero. The required return is 15 percent, and the tax rate is 34 percent. Sales are projected at 400 units per year. Price per unit is $3,000, variable cost per unit is $1,900, and fixed costs are $250,000 per year. No net working capital is required.
If 5% variation on either side in all the contents then

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

Problem 2: What is the base case NPV?

Problem 3: What are the best and worst case scenario NPVs?

Problem 4:  What is accounting break even for the base case?

Problem 5: What is cash break even?

Problem 6: What is financial break even?

Reference no: EM132811376

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