e are evaluating a project that costs $958,000, has a life of seven years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 125,000 units per year. Price per unit is $39, variable cost per unit is $22, and fixed costs are $961,832 per year. The tax rate is 23 percent, and we require a return of 14 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within /- 18 percent.