File: ch08, Chapter 8, Ethical Problems of Organizations

Calculate the NPV of the optimistic scenario. First, determine the yearly cash flow. To determine the number of rackets sold, multiply the market size by the market share. Number of Rackets = Market Size ( Market Share = 130,000 ( 0.27 = 35,100. Cash Flow = [Revenue – Variable Costs – Fixed Costs] (1 – Tc) + Depreciation Tax Shield ................
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