Input area:
Initial cost
$ 775,000
Project life
7
Units sales
67,500
Price/unit
$ 46.50
Variable cost/unit
$ 24.00
Fixed costs
$ 700,000
Tax rate
21%
Required return
11%
Price uncertainty
9%
Quantity uncertainty
9%
Variable cost uncertainty
9%
Fixed cost uncertainty
9%
Output area:
Annual depreciation
$110,714
Scenario
Unit sales
Unit price Unit variable cost
Fixed costs
Base case
67,500
$ 46.50 $ 24.00 $ 700,000
Best case
73,575
$ 50.69 $ 21.84 $ 637,000
Worst case
61,425
$ 42.32 $ 26.16 $ 763,000
Best-case OCF
Best-case NPV
Worst-case OCF
Worst-case NPV