What is the npv of the project in best-case scenario

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Question: We are evaluating a project that costs $1058174, 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 43947 units per year. Price per unit is $48, variable cost per unit is $20, and fixed costs are $823846 per year. The tax rate is 37 percent, and we require a 9 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-8 percent. What is the NPV of the project in best-case scenario? (Negative amount should be indicated by a minus sign. Round your final answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign and commas in your response. For example, $123,456.78 should be entered as 123457.)

Reference no: EM131971043

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