We are evaluating a project that costs $841,000, has a 9-year life, and has no s
ID: 2631777 • Letter: W
Question
We are evaluating a project that costs $841,000, has a 9-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 105,000 units per year. Price per unit is $40, variable cost per unit is $29, and fixed costs are $848,569 per year. The tax rate is 36 percent, and we require a 14 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-11 percent.
Calculate the best-case and worst-case NPV figures
We are evaluating a project that costs $841,000, has a 9-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 105,000 units per year. Price per unit is $40, variable cost per unit is $29, and fixed costs are $848,569 per year. The tax rate is 36 percent, and we require a 14 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-11 percent.
Explanation / Answer
We evaluated the impact of a variety of motorcycle crash related factors, ... Motorcyclists cost have average medical costs 16 times as high as those for ... up to nine ICD-9 and five procedure codes, an external cause of injury code (E-Code), charges .... costs were $508,000, average quality of life costs were $841,000
Traffic, Stress, Structural Evaluation, Project Costs. ... Lng: -122.895417), Route carried "on" structure: Interstate 5, Year Built: 1957, Year ... Kilometerpoint: 169.040, Lanes on structure: 9, Base Highway Network: Yes, ..... Cost: $4,207,000, Roadway Improvement Cost: $841,000,
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