We are evaluating a project that costs $1077686, 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 41111 units per year. Price per unit is $47, variablecost per unit is $21, and fixed costs are $821986 per year. The taxrate is 38 percent, and we require a 11 percent return on thisproject. Suppose the projections given for price, quantity,variable costs, and fixed costs are all accurate to within +/-8percent. What is the NPV of the project in worst-case scenario?(Negative amount should be indicated by a minus sign. Round yourfinal answer to the nearest dollar amount. Omit the "$" sign andcommas in your response. For example, $123,456.78 should be enteredas 123457.)
We are evaluating a project that costs $1077686, 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 41111 units per year. Price per unit is $47, variablecost per unit is $21, and fixed costs are $821986 per year. The taxrate is 38 percent, and we require a 11 percent return on thisproject. Suppose the projections given for price, quantity,variable costs, and fixed costs are all accurate to within +/-8percent. What is the NPV of the project in worst-case scenario?(Negative amount should be indicated by a minus sign. Round yourfinal answer to the nearest dollar amount. Omit the "$" sign andcommas in your response. For example, $123,456.78 should be enteredas 123457.)
