Thomson Incorporated is considering a six year project with the following information:

Initial fixed asset investment $210,000; straight-line depreciation to zero over its six year life, no residual value

Price: $180 per unit

Fixed costs per year: $720,000 (before acquiring the fixed asset above)

Units sold per year: 25,500

Variable cost: $110 per unit

Tax rate: 40%

Compute the Net Present Value for each of the three scenarios (base case, worst case, and best case). Use a discount rate of 15% for each scenario.

Compute the Internal Rate of Return for each of the three scenarios (base case, worst case, and best case).