Essay
Exhibit 11-1
A company is considering investing $1.2M in a facility to manufacture a new product.The product will have a five year life,after which the facility will be shut down.A pro forma cash flow sheet for this project,with forecasted production levels,unit prices,and production costs,is shown below:
-[Part 5] Refer to Exhibit 11-1.What are the chances the firm could loose money on this project,given the price uncertainty?
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