#14

We are evaluating a project that costs $729,600, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 90,000 units per year. Price per unit is $47, variable cost per unit is $34, and fixed costs are $725,000 per year. The tax rate is 21 percent, and we require a return of 11 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 10 percent.

Calculate the best-case and worst-case NPV figures.

This is my work for best-case:

Initial Cost:	729600
units sold	99000
price per unit	51.7
VC per unit	30.6
FC	65250
	dep	EBT	tax	CFs
1	$ 91,200.00	$ 1,932,450.00	$ 405,814.50	$ 1,617,835.50
2	$ 91,200.00	$ 1,932,450.00	$ 405,814.50	$ 1,617,835.50
3	$ 91,200.00	$ 1,932,450.00	$ 405,814.50	$ 1,617,835.50
4	$ 91,200.00	$ 1,932,450.00	$ 405,814.50	$ 1,617,835.50
5	$ 91,200.00	$ 1,932,450.00	$ 405,814.50	$ 1,617,835.50
6	$ 91,200.00	$ 1,932,450.00	$ 405,814.50	$ 1,617,835.50
7	$ 91,200.00	$ 1,932,450.00	$ 405,814.50	$ 1,617,835.50
8	$ 91,200.00	$ 1,932,450.00	$ 405,814.50	$ 1,617,835.50
			NPV	$7,595,980.09

I don't understand what I did wrong/ why my work is wrong. Please explain.