Problem $10-9$ Scenario Analysis $($LO$3)$

The most likely outcomes for a particular project are estimated as follows:

However, you recognize that some of these estimates are subject to error. Suppose each variable turns out to be either $10\%$ higher or

$10\%$ lower than the initial estimate. The project will last for $10$ years and requires an initial investment of $$1$ million, which will be

depreciated straight$-$line over the project life to a final value of zero. The firm's tax rate is $21\%,$ and the required rate of return is $12\%.$

a$.$ What is the project's NPV in the best$-$case scenario, that is$,$ assuming all variables take on the best possible value? $($please solve for a$.)$

b$.$ What is the project's NPV in the worst$-$case scenario? $($the answer provided in screen shot is correct it is a negative amount$)$

Note: For all the requirements, a negative amount should be indicated by a minus sign. Enter your answers in dollars, not in

millions. Do not round intermediate calculations. Round your answers to the nearest dollar amount.