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11 The most likely outcomes for a particular project are estimated as follows: However, you recognize that some of these estimates are subject to error.

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11

The most likely outcomes for a particular project are estimated as follows: However, you recognize that some of these estimates are subject to error. Suppose each variable turns out to be elther 10% higher or 10% lower than the Initial estimate. The project will last for 10 years and requires an initar investment of $1. million, which will be depreclated stralght-ine over the project Iffe to a final yolue of zero The fim's tax rate is 21%, and the required rate of return is 14%. a. What is project's NPV in the best-case scenarlo, that is, assuming all varlables toke on the best possible value? b. What is project's NPV in the worst-case scenarlo? Note: For all the requirements, a negatlve amount should be lndicated by a minus slgn. Enter your answers in dollars, not in millions. Do not round Intermedlate calculotions. Round your answers to the nearest dollar amount

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