Question: Problem 9-21 Scenario Analysis [LO 3] We are evaluating a project that costs $2,130,000, has a 8-year life, and has no salvage value. Assume that

 Problem 9-21 Scenario Analysis [LO 3] We are evaluating a project

Problem 9-21 Scenario Analysis [LO 3] We are evaluating a project that costs $2,130,000, has a 8-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 90.600 units per year. Price per unit is $38.85. variable cost per unit is $23.95, and fixed costs are $860,000 per year. The tax rate is 25 percent and we require a return of 11 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 3:10 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., 32.16.) Best-case NPV Worst-case NPV

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