PQR Ltd. is considering an equipment of $1,680,000, has a life of six year, and depreciation is straight line to zero over the use life of the project. Salvage value of the equipment is zero at the...

Extracted text: PQR Ltd. is considering an equipment of $1,680,000, has a life of six year, and depreciation is straight line to zero over the use life of the project. Salvage value of the equipment is zero at the end of the project. Data of sales, price per unit, variable cost per unit and fixed cost is provided in the table below. Sales in units Price per unit Variable Cost per unit Fixed Cost 88,500 $37.50 $20.35 $750,000 Sales units, price, variable cost and fixed cost are all accurate to within +5%. Calculate the net present value (NPV) under the worst case scenario, when the required rate of return is 12% and tax rate is 30%.