A project requires an initial investment of $10,000, straight-line
depreciable to zero over 4 years. The discount rate is 10%. Your tax
bracket is 34% and you receive a tax credit for negative earnings in
the year in which the loss occurs. Additional information for variables
with forecast error are shown below.
				Base	Lower	Upper
				Case	Bound	Bound
			Unit Sales	3,000	2,750	3,250
			Price/unit	$14	$13	$16
			Variable cost/unit	$9	$8	$10
			Fixed costs	$9,000	$8,500	$10,000

What is the worst case NPV for the project?

$11,594 $10,967 $ 4,423 $ 2,327 3677