We are evaluating a project that costs $$3,300,000,$ has a $3-$year life, and has no salvage value. Assume that depreciation is straight$-$line to zero over the life of the project. Sales are projected at $140,000$ units per year. Price per unit is $$43,$ variable cost per unit is $$25,$ and fixed costs are $$750,000$ per year. The tax rate is $22$ percent, and we require a return of $14$ percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within plus minus $20$ percent. Calculate the base$-$case, worst$-$case, and best$-$case NPV figures.

Multiple Choice

$$467,080$;$-$$$2,475,553$;$$4,788,874$

$$1,572,300$; $-$$$2,776,004$; $$3,709,525$

$$467,080$;$-$$$3,475,553$;$$5,788,874$

$$764,300$; $-22,776,004$;$$3,709,525$

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