We are evaluating a project that costs $1,675,000, has a six-year life, and has no salvage...

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We are evaluating a project that costs $1,675,000, has asix-year life, and has no salvage value. Assume that depreciationis straight-line to zero over the life of the project. Sales areprojected at 91,000 units per year. Price per unit is $35.95,variable cost per unit is $21.40, and fixed costs are $775,000 peryear. The tax rate is 35 percent, and we require a return of 11percent on this project.
Required:
Suppose the projections given for price, quantity, variablecosts, and fixed costs are all accurate to within ±10 percent.Calculate the best-case and worst-case NPV figures.(Do not round intermediatecalculations. Negative amounts should be indicatedby a minus sign. Round your answers to 2 decimalplaces (e.g., 32.16).)
NPV
Best-case $
Worst-case $

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We are evaluating a project that costs $1,675,000, has asix-year life, and has no salvage value. Assume that depreciationis straight-line to zero over the life of the project. Sales areprojected at 91,000 units per year. Price per unit is $35.95,variable cost per unit is $21.40, and fixed costs are $775,000 peryear. The tax rate is 35 percent, and we require a return of 11percent on this project.Required:Suppose the projections given for price, quantity, variablecosts, and fixed costs are all accurate to within ±10 percent.Calculate the best-case and worst-case NPV figures.(Do not round intermediatecalculations. Negative amounts should be indicatedby a minus sign. Round your answers to 2 decimalplaces (e.g., 32.16).)NPV Best-case$ Worst-case$