we are evaluating a project that costs $966,000, has a life of twelve years, and has no salvage value. Assume that depreciation is a straight line to zero over the life of the project. Sales are projected at 131,000 units per year. Price per unit is $35, variable cost per unit is $26, and a fixed costs are $979524 per year. The tax rate is 25 percent, and we require a return of 14 percent on this project. The projections given for price, quantity, and fixed costs are all accurate to within +/-17 percent.

a. Calculate the best-case NPV

b. Calculate the worst-case NPV

We are evaluating a project that costs $966,000, has a life of twelve years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 131,000 units per year. Price per unit is $35, variable cost per unit is $26, and fixed costs are $979,524 per year. The tax rate is 25 percent, and we require a return of 14 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/17 percent. a. Calculate the best-case NPV. Best case b. Calculate the worst-case NPV