Company XYZ is considering the following investment project:

It is a 3-year project;

Initial investment is $210,000;

Annual unit sales is predicted at 1,050;

Unit sales price in the first year will be $180 and it will increase with inflation rate;

Inflation rate is estimated to be 2% annually;

Unit variable cost is $65 in the first year and it will increase with inflation rate;

Total fixed costs is $19,000 in the first year and it will increase with inflation rate;

Net working capital is 10% of sales in the next year;

Marginal income tax rate is 21%;

Straight-line depreciation method is used;

Salvage value of the investment in 3 years is $18,000 (assuming no tax for this);

XYZ's WACC is 15.50% annually and this project has an average risk level.

(1) Find the net operating cash flows;

(2) Find the net incremental cash flows;

(3) If it is reasonable to assume this company can reinvest cash flows for an annual return of 15.50%, which is the MIRR of this project?

(4) What is the discounted payback period of this project?

(5) Find the NPV of this investment, given the above information which is the base case scenario (60% likely);

(6) Find the NPV of this investment if annual unit sales is 20% lower in the worst case scenario (15% likely);

(7) Find the NPV of this investment if annual unit sales is 9% higher in the best case scenario (25% likely);

(8) What is the expected NPV of this investment, and what is the coefficient of variation of the NPVs from the three scenarios?