We are evaluating a project that costs $$890,000,$ will last for eight years, and has no salvage value. The equipment will be depreciated in

$2$ a straight$-$line manner over the project's life. Sales will be $53,000$ units per year. The price per unit is $$60,$ variable cost per units is $$33,$ and fixed costs are $$915,000$ per year. The tax rate is $24$ percent, and the required return is $8$ percent. Suppose the projections for price, quantity, variable costs, and fixed costs are accurate to $-10$ percent. What are the best$-$case and worst$-$case NPVs for this project?

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You must use the built$-$in Excel function to answer this question. The OCF must be calculated using the depreciation tax shield approach.

$4$

$5$ Input area:

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$\backslash$table$[[,,],[$Initial cost$,$$$,890,000],[$Project life,$8,],[$Units sales,S$,63,000],[$Price per unit,$$,60],[$Variable cost per unit,$$,33],[$Fixed costs,$915,000,],[$Tax rate,$24\%,],[$Required return,$8\%,],[$Price uncertainty,$10\%,],[$Quantity uncertainty,$10\%,],[$Variable cost uncertainty,$10\%,],[$Fixed cost uncertainty,$10\%,]]$

Fixed cost uncertainty