ABC, Inc. are evaluating a project that cost $716,000, has an fifteen-year life, and has no salvage value (Assume that depreciation is straight-line to zero over the life of the project). The company will evaluate the project using scenario analysis. In normal scenario, sales are projected at 104,000 units per year. Price per unit is $37, variable cost per unit is $27, and fixed costs are $722,444 per year. The tax rate is 31 percent, and we require a 15 percent return on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 18 percent.

Using 18% increase/decrease in financial component, help ABC, Inc to calculate the scenario analysis by filling the blank area below.

Calculate the operating cash flow per year and NPV of the project for the best and worst scenarios!