Problem $7-2$ Scenario Analysis

We are evaluating a project that costs $$520,000,$ has a life of $6$ years, and has no

salvage value. Assume that depreciation is straight$-$line to zero over the life of the

project. Sales are projected at $73,000$ units per year. Price per unit is $$45,$ variable cost

per unit is $$30,$ and fixed costs are $$840,000$ per year. The tax rate is $21$ percent, and we

require a return of $15$ percent on this project. Suppose the projections given for price,

quantity, variable costs, and fixed costs are all accurate to within $+-10$ percent. Calculate

the best$-$case and worst$-$case NPV figures. $($A negative answer should be indicated by a

minus sign. Do not round intermediate calculations and round your answers to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$