Reference no: EM132742072

Problem 1: We are evaluating a project that costs $102,933, 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 4,075 units per year. Price per unit is $51, variable cost per unit is $23, and fixed costs are $82,061 per year. The tax rate is 30 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 +/-8 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 "tiny_mce_markerquot; sign and commas in your response. For example, $123,456.78 should be entered as 123457.)