A company is considering a new project requiring an upfront fixed-asset investment of $1,000,000 with an economic life of five years. Depreciation is taken on a straight-line basis, with no expected salvage value. Net working capital required immediately is expected to be $100,000 and will be recovered in full upon the project's completion in five years.  In the optimistic-scenario forecast, the annual sales volume is 37,400 units, while the sale price is $98 per unit with a variable cost of $36 per unit.  Annual fixed costs are estimated to $844,000. If the appropriate discount rate is 10.00% and the tax rate 30%, what is the project's NPV? Options   $3,102,996   $3,180,571   $3,258,146   $3,335,721   $3,413,296

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Q: what is the project's NPV? Options

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.