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please answer using excel and show formulas Task 1: Project Analysis You are considering a new product launch. The project will cost $4,500,000, have a

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Task 1: Project Analysis You are considering a new product launch. The project will cost $4,500,000, have a five-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 750 units per year; price per unit will be $16,500, variable cost per unit will be $12,000, and fixed costs will be $850,000 per year. The required return on the project is 11 percent, and the relevant tax rate is 25 percent. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within 10 percent. Questions: 1. What are the upper and lower bounds for these projections (upper and lower bound means the best and worst case numbers)? What are NPVs for the base-case, the bestcase and worst-case scenarios? (Hint: use 10 percent variations. These variations will be only applicable for unite sale, variable costs, and fixed costs) (10 Points)

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