A project requires an initial investment of $5,000, straight-line depreciable to zero over 5 years. The discount rate is 12%. Your tax bracket is 35% and you receive a tax credit for negative earnings in the year in which the loss occurs. Additional information for variables with forecast errors are shown below.

Please do not solve in excel!

	Base case	Lower bound	Upper bound
Unit sales	2,000	1,200	2,800
Price/unit	$15	$13	$17
Variable cost/unit	$10	$8	$12
Fixed costs	$4,000	$3,250	$4,750

What is the worst case NPV for the project?