We are evaluating a project that costs $$892,000,$ has a life of seven years, and

has no salvage value. Assume that depreciation is straight$-$line to zero over the

life of the project. Sales are projected at $150,000$ units per year. Price per unit

is $$43,$ variable cost per unit is $$25,$ and fixed costs are $$907,164$ per year. The

tax rate is $23$ percent, and we require a return of $15$ percent on this project.

The projections given for price, quantity, variable costs, and fixed costs are all

accurate to within $+/-12$ percent.

a$.$ Calculate the best$-$case NPV$.$

Best case

b$.$ Calculate the worst$-$case NPV$.$

Worst case