# [Solution]Nashville State Community College COURSE FINANCE 9671048 We are evaluating a project that costs \$1,140,000, has a ten-year life

We are evaluating a project that costs \$1,140,000, has a ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over…

We are evaluating a project that costs \$1,140,000, has a ten-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 54,000 units per year. Price per unit is \$50, variable cost per unit is \$20, and fixed costs are \$720,000 per year. The tax rate is 35 percent, and we require a return of 18 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within Â±10 percent.Calculate the best-case and worst-case NPV figures. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).)NPV Best-case\$ Worst-case\$

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