09. Magellen Industries is analyzing a new project and has asked you to calculate the project's net income in A. the worst-case scenario; and in 111 B. the expected scenario; and in C. the best-case scenario. The company's CFO has gathered the following information: 112 Lower bound Expected value Upper bound *Note: values supplied in the following table are bounds, not cases. * 113 Sales quantity 9,500 10,000 10,500 114 Sales price/unit $ 9.75 $ 10.00 $ 10.25 115 Variable cost/unit $ 4.80 $ 5.20 $ 5.60 116 Fixed cost $ 15,000 $ 18,000 $ 21,000 117 Depreciation: Straight-line to zero for the four-year life of the project, with no salvage value. PVCCATS does not apply. 118 Capital investment $ 120,000 119 Required return 15% 120 Marginal tax rate 35% 121 122 123 124 125 126 127 128 S = HI2 Template +