Develop a proposal for this case, if University Canada West wants to invest in a New Post Graduate Program. The Project under consideration costs $20 Million, has a 8 (eight) years life, and has no salvage value. Depreciation is straight-line to zero. The required rate of return is 19%. Sales are projected at 5,000 students per year. Tuition Fees per student will be $7,500. Variable cost per student will be $3,500, and fixed costs are $4.5 Million per year. Tax rate is 30%. Ignore CCA.

Your proposal should contemplate the following questions and problems:

Suppose you think that the number of students is accurate to within 15%. Calculate the upper and lower bounds for these projections. (BEST-case and WORST-case scenarios).

1. Calculate the Base-case NPV and IRR (5,000students/year).

Should UCW accept the project based on the base-case scenario?

1. Calculate the BEST-case NPV and the WORST-case NPV andIRR

If you look at best and worst-case scenarios, what else should be considered? Will you change your recommendation and why?

1. Calculate other project evaluation criteria that you learned from the textbook and lessons:
   • Paybackperiod
   • discounted paybackperiod
   • Break evenpoint
   • profitability index,
   • average accountingreturn

and explain what it means in terms of this project, how it will influence your decision.