Global Enterprise, Inc. are evaluating a project that cost $716,000, has an eleven-year life, and has no salvage value (Assume that depreciation is straight-line to zero over the life of the project). The company will evaluate the project using scenario analysis. In normal scenario, sales are projected at 118,000 units per year. Price per unit is $44, variable cost per unit is $21, and fixed costs are $724,592 per year. The tax rate is 31 percent, and we require a 19 percent return on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 14 percent.

Using 14% increase/decrease in financial component, help Global Enterprise to calculate the scenario analysis by filling the blank area below.

BEST SCENARIO (Remember! high revenue, low cost)

• Operating Cash Flow per year = $ blank

• NPV of the project = $ blank

WORST SCENARIO (Remember! low revenue, high cost)

• Operating Cash Flow per year = $ blank

• NPV of the project = $ blank