For an answer to be graded as correct, you must use an Excel formula: 1. Begin each formula with an = sign. 2. Reference cells, instead of entering values. Example: =B3+C3 We are evaluating a project that costs $845,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 51,000 units per year. Price per unit is $53, variable cost per unit is $27, and fixed costs are $950,000 per year. The tax rate is 22 percent, and we require a return of 10 percent on this project. Suppose the projections given for price, quantity, varhtole costs, and fixed costs are all accurate to within \pm 10 percent. Calculate the best-case and worst-case NPV figures: Initial cost Project life Units sales Price per unit Variable cost per unit Fixed costs Tax rate Required return Price uncertainty Quantity uncertainty Variable cost uncertainty Fixed cost uncertainty For an answer to be graded as correct, you must use an Excel formula: 1. Begin each formula with an = sign. 2. Reference cells, instead of entering values. Example: =B3+C3 We are evaluating a project that costs $845,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 51,000 units per year. Price per unit is $53, variable cost per unit is $27, and fixed costs are $950,000 per year. The tax rate is 22 percent, and we require a return of 10 percent on this project. Suppose the projections given for price, quantity, varhtole costs, and fixed costs are all accurate to within \pm 10 percent. Calculate the best-case and worst-case NPV figures: Initial cost Project life Units sales Price per unit Variable cost per unit Fixed costs Tax rate Required return Price uncertainty Quantity uncertainty Variable cost uncertainty Fixed cost uncertainty