What is the npv in basic assumptions

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You are responsible for evaluating the new investment project. The cost of the project is $ 500,000 and will have a lifespan of 5 years. Damping is linear up to a zero value. The unit variable costs are $ 10,000 and the fixed costs are $ 400,000. The plan is to sell 1000 units at $ 15,000 per unit. The minimum return payable is 10% and the tax rate is 34%. Based on your expertise, you assume that the projections for number of units sold, variable costs and fixed costs are probably correct within +/- 15%, what is the NPV in basic assumptions and at best and the worst case scenario?

Reference no: EM133114508

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