1. The Adept Co. is analyzing a proposed project, which will cost $78,000 and be depreciated over a 13-year life. The company expects to sell 3,500 units, give or take 10 percent. The expected variable cost per unit is $7 and the expected fixed costs are $12,500. Costs estimates are considered accurate within a plus or minus 5 percent range. The sale price is estimated at $15, give or take 2 percent. The tax rate is 30%.

A. What is the EBIT under the expected scenario?

B. What would EBIT be under the most pessimistic scenario?

C. What would operating cashflow be under the most optimistic scenario?

D. What would operating cashflow be under the most pessimistic scenario?