calculate best case npv

calculate worst case npv

We are evaluating a project that costs $904,000, has a life of eleven years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 156,000 units per year. Price per unit is $43, variable cost per unit is $23, and fixed costs are $913,040 per year. The tax rate is 22 percent, and we require a return of 19 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 11 percent