PLEASE DO NOT USE CHAT-GPT.

Develop a proposal for this case, if a University 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.

Assume that the number of students is accurate 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 (5,000 students/year). Should the University accept the project based on the base-case scenario?

2)Calculate the BEST-case NPV and the WORST-case NPV and IRR . Is there anything else that should be considered in addition to best and worst-case scenarios? Do you think your recommendation should be changed and if so, why?

3) Calculate other project evaluation criteria: - Payback period - discounted payback period - Break even point - profitability index, - average accounting return and explain what it means in terms of this project, how it will influence in the decision.

PLEASE SHOW HOW YOU CALCULATE (FORMULAS).