$14$

You are considering a new product launch. The project will cost $$2,375,000,$ have a fouryear life, and have no salvage value; depreciation is straight$-$line to zero. Sales are projected at $340$ units per year; price per unit will be $$19,900,$ variable cost per unit will be $$14,150,$ and fixed costs will be $$730,000$ per year. The required return on the project is $11$ percent, and the relevant tax rate is $22$ percent.

a$.$ Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within $+-10$ percent. What are the upper and lower bounds for these projections? What is the base$-$case NPV$?$ What are the best$-$case and worst$-$case scenarios? $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your NPV answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ Round your other answers to the nearest whole number, e$.$g$.32.)$

$\backslash$table$[[$Scenario$,$Unit Sales,,Cost,Fixed Costs,NPV$],[$Base$,340,$$$,14,150,$$$,730,000,2,433,819\mathrm{.}85$