Calculate the pessimistic and optimistic NPV.

Fixed Cost: $500,000 occurs in the first year to scale production; no other fixed costs are projected for the next 7 years. This is known.

Variable Cost: $2500 per unit sold (could be up to 20% higher or 10% lower)

3000 High, 2250 Low

Sales Price: $5000 per unit sold (could be up to 10% higher or 10% lower)

5500 High, 4500 Low

Sales Quantity: 1000 units per year (could be up to 10% higher or 15% lower)[1]

1100 High, 850 Low

[1] Note that sales will not grow year-to-year. This is due to long-term contracts that customers have with current suppliers. It is possible that sales (and production of Go-Figure tech) can increase after year 7, but that is outside of the scope for GCV. In other words: there is no sales growth year to year for the first 7 years. Sales will stay at 1000 units per year (+10%/-15%) for the first 7 years.