Answer:
NPV = -$132,193.77
Explanation:
best case NPV:
price per unit (+4%) = $48.88
sales per year (+4%) = 32,240
variable cost per unit (-2%) = $22.54
fixed costs (-2%) = $826,042
depreciation expense per year = $227,000 / 4 = $56,750
contribution margin per unit = $26.34
23% tax rate
discount rate = 11.5%
initial outlay = $227,000
net cash flows = {[($26.34 x 32,240) - $826,042 - $56,750] x 77%} + $56,750 = $30,885.392
NPV = -$132,193.77
