ected sales: 125,000 units per year price: $240 able cost: $144 d cost: $5,430,000 project will last for 10 years and requires an Initial Investment of $21.78 million, which will be depreciated straight-line ect life to a final value of zero. The firm's tax rate is 30%, and the required rate of return is 12%. ever, you recognize that some of these estimates are subject to error. In one scenario a sharp rise in the dollar could Il 30% below expectations for the life of the project and, if that happens, the unit price would probably be only $230. T s is that fixed costs could be as low as $3,620,000, and variable costs would decline in proportion to sales. What is project NPV If all variables are as expected? Note: Do not round Intermediate calculations. Enter your answer in thousands not in millions and round your a nearest whole dollar amount.

ected sales: 125,000 units per year price: $240 able cost: $144 d cost: $5,430,000 project will last for 10 years and requires an Initial Investment of $21.78 million, which will be depreciated straight-line ect life to a final value of zero. The firm's tax rate is 30%, and the required rate of return is 12%. ever, you recognize that some of these estimates are subject to error. In one scenario a sharp rise in the dollar could Il 30% below expectations for the life of the project and, if that happens, the unit price would probably be only $230. T s is that fixed costs could be as low as $3,620,000, and variable costs would decline in proportion to sales. What is project NPV If all variables are as expected? Note: Do not round Intermediate calculations. Enter your answer in thousands not in millions and round your a nearest whole dollar amount.

Name: You are considering a proposal to produce and market a new sluffing m
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Description: You are considering a proposal to produce and market a new sluffing machine. The most likely outcomes for the project are as follows:Expected sales: 125,000 units per yearUnit price: $240Variable cost: $144Fixed cost: $5,430,000The project will last

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 13P

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