Best Case Particulars S a. Sales 11000 Units b. Price per unit $137.50 c. Variable cost per unit $67.50 d. Fixed costs $225,000 Computation of Net Present Value Particulars S i. Revenues (a x b) $1,512,500 ii. Variable cost ( a x c) $742.500 Fixed Expenses (d) $225.000 iv. Gross profit ( i-ii-ili) $545.000 Depreciation $100.000 vi. Net operating income ( iv -v) $445.000 vii. Income tax expense (vi x 34%) $151,300 vili. Net income ( vi - vii) $293,700 ix. Cash flow (v + vili) $393,700 x. Net Present Value (NPV) = PV( 7, 2, -ix) - 1 (By using Excel) $1,419,116