We are evaluating a project that costs $714,400, has an eight-year life, and has no salvage...

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We are evaluating a project that costs $714,400, has aneight-year life, and has no salvage value. Assume that depreciationis straight-line to zero over the life of the project. Sales areprojected at 90,000 units per year. Price per unit is $51, variablecost per unit is $36, and fixed costs are $745,000 per year. Thetax rate is 25 percent, and we require a return of 11 percent onthis project. Suppose the projections given for price, quantity,variable costs, and fixed costs are all accurate to within ±10percent. Calculate the best-case and worst-case NPV figures. (Anegative answer should be indicated by a minus sign. Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.)

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We are evaluating a project that costs $714,400, has aneight-year life, and has no salvage value. Assume that depreciationis straight-line to zero over the life of the project. Sales areprojected at 90,000 units per year. Price per unit is $51, variablecost per unit is $36, and fixed costs are $745,000 per year. Thetax rate is 25 percent, and we require a return of 11 percent onthis project. Suppose the projections given for price, quantity,variable costs, and fixed costs are all accurate to within ±10percent. Calculate the best-case and worst-case NPV figures. (Anegative answer should be indicated by a minus sign. Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.)