A B D E F G H * Q10. The Eastern Company is analyzing a new project and has asked you to calculate the project's net income in A. the worst-case scenario; and in B. the expected 155 scenario; and in C. the best-case scenario. The company's CFO has gathered the following information: 156 Lower bound Expected value Upper bound *Note: values supplied in the following table are bounds, not cases. 157 Sales quantity 185,000 250,000 310,000 158 Sales price/unit $ 22.50 $ 23.50 $ 24.10 159 Variable cost/unit $ 14.75 $ 15.25 $ 16.00 160 Fixed cost $ 680,000 $ 750,000 $ 890,000 161 Depreciation: Straight-line to zero for the four-year life of the project, with no salvage value. PVCCATS does not apply. 162 Capital investment $ 150,000 163 Required return 12% 164 Marginal tax rate 25% 165 166 167 168 169 170 171 172 173 174 175