Info

Base Case

Lower Bound

Upper Bound

Unit sales

6,000

5,500

6,500

Price per unit

$80

$75

$85

Variable costs per unit

$60

$58

$62

Fixed costs per year

$50,000

$45,000

$55,000

With this information, we can calculate the base-case NPV by first calculating net income:

Sales

$480,000

Variable costs

360,000

Fixed costs

50,000

Depreciation

40,000

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