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Finefodders analysts have come up with the following revised estimates for the Gravenstein store: Range Pessimistic Expected Optimistic Investment $ 5,400,000 $ 5,200,000 $ 5,000,000

Finefodders analysts have come up with the following revised estimates for the Gravenstein store:

Range

Pessimistic Expected Optimistic
Investment $ 5,400,000 $ 5,200,000 $ 5,000,000
Sales 16,000,000 18,000,000 21,000,000
Variable costs as % of sales 81 80 79.5
Fixed cost $ 3,000,000 $ 2,600,000 $ 2,300,000

Assume the project life is 12 years, the tax rate is 40%, the discount rate is 8%, and the depreciation method is straight-line over the project's life. Conduct a sensitivity analysis for each variable and range and compute the NPV for each. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Negative amounts should be indicated by a minus sign. Enter your answers in dollars, not in millions.)

NPV of Gravenstein Store

Pessimistic Expected Optimistic
Investment $ $ $
Sales $ $ $
Variable costs as % of sales $ $ $
Fixed cost $ $ $

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