Question $4$

OCr$=E8if+$Def$-$Tares

FTN$960$

Assume that depreciation is straight$-$line to zero over the life of the project. Sales are projected at $154,000$ units per year. Price per unit is $$41,$ variable cost per unit is $$20,$ and fixed costs are $$865,102$ per year. The tax rate is $33$ percent, and we require a $14$ percent retum on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within $+-14$ percent. What is the worst$-$case NPV$?$