Consider a project to supply Detroit with $20,000$ tons of machine screws annually for automobile production.

You will need an initial $$3,600,000$ investment in threading equipment to get the project started; the project

will last for $4$ years. The accounting department estimates that annual fixed costs will be $$850,000$ and that

variable costs should be $$240$ per ton; accounting will depreciate the initial fixed asset investment straight$-$

line to zero over the $4-$year project life. It also estimates a salvage value of $$250,000$ after dismantling costs.

The marketing department estimates that the automakers will let the contract at a selling price of $$380$ per

ton. The engineering department estimates you will need an initial net working capital investment of

$$360,000.$ You require a return of $11$ percent and face a marginal tax rate of $24$ 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? $($Do not round intermediate calculations and round your

answer to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

b$.$ Suppose you believe that the accounting department's initial cost and salvage value projections are

accurate only to within $+-15$ percent; the marketing department's price estimate is accurate only to within

$+-10$ percent; and the engineering department's net working capital estimate is accurate only to within

$+-5$ 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 and round your answer

to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$