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Chapter 11 & Chapter 14 Homeworki Saved 9 We are evaluating a project that costs $585,000, has a six-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 85,000 units per year. Price per unit is $37, variable cost per unit is $23, and fixed costs are $675,000 per year. The tax rate is 21 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. points eBook Calculate the best-case and worst-case NPV figures. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g32.16 References NPV Best-case Worst-case
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