subject
Business, 23.04.2020 23:39 angelicar4144

We are evaluating a project that costs $1,890,000, has a 6-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 89,400 units per year. Price per unit is $38.37, variable cost per unit is $23.55, and fixed costs are $836,000 per year. The tax rate is 22 percent and we require a return of 9 percent on this project.

Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. Calculate the best-case and worst-case NPV figures.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 22:50
The following data pertains to activity and costs for two months: june july activity level in 10,000 12,000 direct materials $16,000 $ ? fixed factory rent 12,000 ? manufacturing overhead 10,000 ? total cost $38,000 $42,900 assuming that these activity levels are within the relevant range, the manufacturing overhead for july was: a) $10,000 b) $11,700 c) $19,000 d) $9,300
Answers: 2
question
Business, 22.06.2019 09:50
Why should managers invest any excess cash
Answers: 1
question
Business, 22.06.2019 11:40
On coral island in 2012, the labor force is 12,000, the unemployment rate is 10 percent, and the labor force participation rate is 60 percent. during 2013, 200 unemployed people found jobs and the working-age population increased by 1,000. the total number of people in the labor force did not change. the working-age population at the end of 2013 was the unemployment rate at the end of 2013 was round up to the second decimal. the labor force participation rate at the end of 2013 was round up to the second decimal.
Answers: 1
question
Business, 22.06.2019 20:00
Ajax corp's sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. what was the firm's times-interest-earned (tie) ratio? a. 4.72b. 4.97c. 5.23d. 5.51e. 5.80
Answers: 1
You know the right answer?
We are evaluating a project that costs $1,890,000, has a 6-year life, and has no salvage value. Assu...
Questions
question
English, 16.10.2020 18:01
question
Mathematics, 16.10.2020 18:01
question
History, 16.10.2020 18:01
Questions on the website: 13722367