What is the npv of project in worst-case scenario

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Reference no: EM131537412

We are evaluating a project that costs $1074790, has a seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 40605 units per year. Price per unit is $51, variable cost per unit is $24, and fixed costs are $834279 per year. The tax rate is 31 percent, and we require a 12 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-10 percent. What is the NPV of the project in worst-case scenario? (Negative amount should be indicated by a minus sign. Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)

Reference no: EM131537412

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