Peabody Corporation has the base$-$case estimates for its new small engine assembly project provided below. Suppose the company believes that all of its estimates $($except the product life, depreciation method, tax rate, and MARR$)$ are accurate only to within $+-20\%.$

Click the icon to view the base$-$case estimates for the investment project.

Click the icon to view the MACRS depreciation schedules.

Click the icon to view the interest factors for discrete compounding when $i=15\%$ per year.

$($a$)$ What is the NPW of the project based on its base$-$case scenario?

The NPW of the project based on its base$-$case scenario is $ $$ thousand. $($Round to one decimal place.$)$

More Info

Price per unit $=$$$600$

Variable costs $=$ $$140$ per unit

Fixed costs $=$$$2\mathrm{.}1$ million

Demand $=24,000$ units per year

Capital investment $=$$$12$ million at year $0$

Product life $=8$ years

Salvage value $=$$$570,000$

Depreciation method $=$ seven$-$year MACRS

Tax rate $=35\%$

MARR $=15\%$