What is the NPV of the project in worst-case scenario

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Reference no: EM131074593

We are evaluating a project that costs $119453, 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 4219 units per year. Price per unit is $48, variable cost per unit is $26, and fixed costs are $80964 per year. The tax rate is 34 percent, and we require a 13 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-11 percent. What is the NPV of the project in worst-case scenario?

Reference no: EM131074593

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