Consider a project to supply Detroit with $20,000$ tons of machine screws annually for automobile production. You will need an initial $$3,100,000$ investment in threading equipment to get the project started; the project will last for five years. The accounting department estimates that annual fixed costs will be $$925,000$ and that variable costs should be $$185$ per ton; accounting will depreciate the initial fixed asset investment straight$-$line to zero over the five$-$year project life. It also estimates a salvage value of $$400,000$ after dismantling costs. The marketing department estimates that the automakers will let the contract at a selling price of $$295$ per ton. The engineering department estimates you will need an initial net working capital investment of $$380,000.$ You require a return of $13$ percent and face a tax rate of $22$ percent on this project.

a$-1.$ What is the estimated OCF for this project? $($Do not round intermediate calculations and round your answer to the nearest whole number, e$.$g$.,32.)$

a$-2.$ What is the estimated NPV for this project? $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ Suppose you believe that the accounting department$$s initial cost and salvage value projections are accurate only to within $\backslash$pm $15$ percent; the marketing department$$s price estimate is accurate only to within $\backslash$pm $10$ percent; and the engineering department$$s net working capital estimate is accurate only to within $\backslash$pm $5$ percent. What is the worst$-$case NPV for this project? The best$-$case NPV$?($A negative answer should be indicated by a minus sign. Do not round intermediate calculations round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

OCF

NPV

Worst Case NPV

BEst Case NPV