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BASIC INFORMATION: A three-year project will cost $60,000 to construct. This will be depreciated straight-line to zero over the three-year life. The price per unit sold is $20 and the variable cost per
Unit sold is $10. Fixed costs are $30,000 per year.
In addition to the BASIC INFORMATION, you expect the number of units sold to be 7,000 with an
Upper bound of 8,000 and a lower bound of 6,000, and you expect the variable cost per unit to be
$10 per unit with an upper bound of $12.50 and a lower bound of $7.50. Assuming a tax rate of
30%, compute the IRR for the BEST case. Note that salvage is $0, and NWC is $0.
Foreseeable Harm
Damage or injury that a reasonable person should have anticipated as a likely outcome of their actions.
Intoxicated Viewer
A person under the influence of alcohol or drugs while watching media, affecting their perception and interpretation.
Exculpatory Clause
A clause in a contract or trust instrument that excuses a party from some duty.
Negligence Liability
Legal responsibility for harm caused by failing to act as a reasonable person would under similar circumstances.
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