You are considering a new product launch. The project will have an initial cost for fixed assets of $1,150,000. This cost will be depreciated over a three year period without any salvage value. Sales are projected at 230 units per year, price per unit will be $7,500, variable cost per unit will be $3,900, and fixed costs will be $122,000 per year. The required return is 14.5 percent and the relevant tax rate is 24 percent. Based on your experience, you think the unit sales and price are accurate within a 2 percent range while costs

What are the OCFs in the base, best, and worst cases

What are the NPVs in the base, best, and worst cases

For each case, briefly mention what does the NPV tell about value creation for shareholders?

Do you recommend undertaking the project? Why or why not?