Question 2: As a financial analyst, you must evaluate a proposed project to produce pen drives. The equipment would cost $60,000, plus $10,000 for installation Annual sales would be 12,000 units at a price of $21 per drive, and the project's life would be 3 years. Current assets would increase by $10,000 and payables by $5,000. At the end of 3 years, the equipment could be sold for $15,000. Depreciation would be based on the MACRS 3-year dass, so the applicable rates would be 33%, 45%, 15%, and 7%. Fixed costs excluding depreciation would be $50,000 per year; the marginal tax rate is 40%; and the corporate WACC is 12%. The CFO asks you to do a scenario analysis using these inputs: Probability Unit Sales VC(%) Best Case 20% 14,000 Base Case 12,000 Worst Case 10,000 80% Other variables are unchanged. What are the expected NPV, the standard deviation, and the coefficient of variation? [12 Marks 60% 60% 70% 20%