Consider a project to supply Hamilton with $20,000$ tonnes of machine screws annually for automobile production. You will need an

initial $$2,800,000$ 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 $$750,000$ and that variable costs should be $$260$ per tonne; accounting will

depreciate the initial fixed asset investment at a CCA rate of $30$ percent over the five$-$year project life. It also estimates a salvage value

of $$220,000$ after dismantling costs. The marketing department estimates that the automakers will let you have the contract at a

selling price of $$370$ per tonne. The engineering department estimates you will need an initial net working capital investment of

$$280,000.$ You require a $14$ percent return and face a marginal tax rate of $38$ percent on this project. Assets will remain in the CCA

class after the end of the project. $($Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.

Round the final answers to $2$ decimal places. Omit $ sign in your response.$)$

a$.$ What is the estimated operating cash flow for this project of NPV$?$

NPV $

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$?$