****Please calculate the NPV in the table - NOTE the wrong answers I have already submitted in the table. Please then calculate the sensitivity in B. Note my incorrect answer I have already submitted. Thanks!

You are considering a new product launch. The project will cost $2,300,000, have a 4-year life, and have no salvage value; depreciation is straight-line to 0. Sales are projected at 160 units per year; price per unit will be $30,000; variable cost per unit will be $18,500; and fixed costs will be $610,000 per year. The required return on the project is 15%, and the relevant tax rate is 36%.

a. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within 10%. What are the upper and lower bounds for these projections? What is the base-case NPV? What are the best-case and worst-case scenarios? (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final NPV answers to 2 decimal places. Omit $ sign in your response.)

Scenario	Unit Sales	Variable Cost	Fixed Costs	NPV
Base	160 Correct	$ 18,500 Correct	$ 610,000 Correct	$ 1,248,051.25 Incorrect
Best	176 Correct	$ 16,650 Correct	$ 549,000 Correct	$ 1,807,600.12 Incorrect
Worst	144 Correct	$ 20,350 Correct	$ 671,000 Correct	$ 688,448.60 Incorrect

b. Evaluate the sensitivity of your base-case NPV to changes in fixed costs. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 3 decimal places. Omit $ sign in your response.)

NPV/FC $ -2.284 Incorrect

****Please calculate the NPV in the table - NOTE the wrong answers I have already submitted in the table. Please then calculate the sensitivity in B. Note my incorrect answer I have already submitted. Thanks!