You are considering a new product launch. The project will cost $$950,000,$ have a four$-$year life, and have no salvage value; depreciation is straight$-$line to zero. Sales are projected at $180$ units per year; price per unit will be $$18,500,$ variable cost per unit will be $$14,000,$ and fixed costs will be $$185,000$ per year. The required return on the project is $15$ percent, and the relevant corporate tax is $35\%.$

a$.$ Based on your experience, you think the unit sales, variable cost, and fixed cost projections given projections are probably accurate to within $+10$ percent. What are the upper and lower bounds for these projections? What is the base$-$case NPV$?$ What are the best$-$case and worst$-$case scenarios? $($Hint: consider your changes t$$ cost and revenue corresponding to each case, e$.$g$.$ best or worst$)$

b$.$ If the probability of base$-$case scenario is $50$ percent, the best$-$case scenario is $25\%,$ the worst$-$case scenario is $25\%,$ What is the project's expected NPV$,$ standard deviation, and its coefficient of variance of$.$