Question: We are evaluating a project that costs $ 1 , 7 7 0 , 0 0 0 , has a 6 year life, and has

We are evaluating a project that costs $1,770,000, has a 6 year life, and has no salvage value. Assume that the depreciation is straight line to zero over the life of the project. Sales are projected at 87,000 units per year. Prifcfe per unit $38.13, variable cost per unit is $23.35, and fixed cost are $824.000 per year. The tax rate is 23 percent and we require a return of 9 percent on this project. Suppose the projections given for price, quality, variable costs, and fixed costs are all accurate to within +10 percent. Calculate the best-case and worst-case NPV figures.
Best case is $2,890,785.94
What is the Worst case?

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