1. 11.1 Scenario analysis Suppose you think that the unit sales, price, variable cost and fixed cost projections given here are accurate to within 5 per cent. What are the upper and lower bounds for these projections? What is the base-case NPV? What are the best- and worst-case scenario NPVs? A project under consideration costs $750 000, has a five-year life and has no salvage value. Depreciation is straight-line to zero. The required return is 17 per cent and the tax rate is 30 per cent. Sales are projected at 500 units per year. Price per unit is $2 500, variable cost per unit is $1 500 and fixed costs are $200 000 per year.