Finance

20.00 points Problem 10-9 Scenario Analysis (L02) he most likely outcomes for a particular protect are estimated as follows Unit pot e $50 Variable cost $30 Fixed cost $500,000 Expected sales 49,000 Lists per year However you recognize that some of these estimates are subject to error. Suppose that each variable may turn out to be either 10% higher or 10% lower than the initial estimate. The protect oil last for 10 years and requires an initial investment of $2.2 million, which will be depreciated straight-line over the project life to a final value of zero. The firm s tax rate is 30% and the required rate of return is 12% a. What is protect NPV in the best-case scenario, that is assuming all variables take on the test possible value? (A negative amount should be indicated by a minus sign. Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to the nearest dollar amount.) NPV $ b. What is protect NPV in the worst-case scenario? (A negative amount should be indicated by a minus sign. Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to the nearest dollar amount.)