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4. Scenario Analysis The most likely outcomes for a particular project are estimated as follows: Unit price: $50 Variable cost: $30 Fixed cost: $300,000 Expected

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4. Scenario Analysis The most likely outcomes for a particular project are estimated as follows: Unit price: $50 Variable cost: $30 Fixed cost: $300,000 Expected Sales: 30,000 units per year However, you recognized that some of these estimates are subject to error. Suppose that each of the above variables may turn out to be either 10% higher or 10% lower than the estimate. The project will required rate of return is 14%. What is the project NPV in the best-case" scenario that is assuming all variables take on the best possible value? What about the "worst-case" scenario

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