We are evaluating a project that costs $1024344, has aseven-year life, and has no salvage value. Assume that depreciationis straight-line to zero over the life of the project. Sales areprojected at 42145 units per year. Price per unit is $54, variablecost per unit is $20, and fixed costs are $817419 per year. The taxrate is 34 percent, and we require a 13 percent return on thisproject. Suppose the projections given for price, quantity,variable costs, and fixed costs are all accurate to within +/-7percent. What is the NPV of the project in best-case scenario?(Negative amount should be indicated by a minus sign. Roundyour final answer to the nearest dollar amount. Omit the "$" signand commas in your response. For example, $123,456.78 should beentered as 123457.)
We are evaluating a project that costs $1024344, has aseven-year life, and has no salvage value. Assume that depreciationis straight-line to zero over the life of the project. Sales areprojected at 42145 units per year. Price per unit is $54, variablecost per unit is $20, and fixed costs are $817419 per year. The taxrate is 34 percent, and we require a 13 percent return on thisproject. Suppose the projections given for price, quantity,variable costs, and fixed costs are all accurate to within +/-7percent. What is the NPV of the project in best-case scenario?(Negative amount should be indicated by a minus sign. Roundyour final answer to the nearest dollar amount. Omit the "$" signand commas in your response. For example, $123,456.78 should beentered as 123457.)
