asset acquisition is 1,400,000 with a four year life (straight lined depreciation) and no salvage value. You estimate sales at 180 units/year with a 16,000/unit selling prices variable cost are expected to be 9800/unit and a fixed cost will be 430,000 annually. Your project requires a 12% rate of return and the company's tax rate is 35%.

Based on prior experience you believe unit sales, variable costs, and fixed cost projections to be accurate to within +/- 10%

a. what are the upper and lower bounds for these projections?

b. What is the base case NPV?

c. What are the best and worst case IRR Scenarios?