We are evaluating a project that costs $2,190,000, has a 8-year life, and has no salvage value. Assume that depreciation is straight-line
to zero over the life of the project. Sales are projected at 91,200 units per year. Price per unit is $38.97, variable cost per unit is $24.05,
and fixed costs are $866,000 per year. The tax rate is 22 percent and we require a return of 11 percent on this project. Suppose the
projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. Calculate the best-case and
worst-case NPV figures.
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to
2 decimal places, e.g., 32.16.
Best-case NPV
$
1,112,906.00
Worst-case NPV
$
-2,864,440.00