Question: We are evaluating a project that costs $ 2 , 1 0 0 , 0 0 0 , has a 7 - year life, and

We are evaluating a project that costs $2,100,000, has a 7-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 98,600 units per year. Price per unit is $37.79, variable cost per unit is $23.90, and fixed costs are $857,000 per year. The tax rate is 24% and we require a return of 12% on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-10%. Calculate the best-case and worst-case NPV figures. We are evaluating a project that costs $2,100,000, has a 7-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 98,600 units per year. Price per unit is $37.79, variable cost per unit is $23.90,
and fixed costs are $857,000 per year. The tax rate is 24 percent and we require a return of 12 percent on this project. Suppose the
projections given for price, quantity, variable costs, and fixed costs are all accurate to within +-10 percent. Calculate the best-case and
worst-case NPV figures.
Note: 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.
 We are evaluating a project that costs $2,100,000, has a 7-year

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