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You are considering a new product launch. The project will cost $1,450,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 160 units per year; price per unit will be $17,000, variable cost per unit will be $10,000, and fixed costs will be $440,000 per year. The required return on the project is 12 percent, and the relevant tax rate is 32 percent. (Do not round intermediate calculations.)

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Answer #1

S578,400 ((17000-10000) * (160)-440000)*(0.68)+0.32* (362500) NPV OCF x [PVIFA 12%,4 Years ] - initial cost $306,802.86 57840

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