Q10. Magellen Industries is analyzing a new project and has asked you to calculate the project's net income in A. the worst-case scenario; and in B. the expected scenario; and in C. the best-case scenario. The company's CFO has gathered the following information:
	Lower bound	Expected value	Upper bound	*Note: values supplied in the following table are bounds, not cases.*
Sales quantity	9,500	10,000	10,500
Sales price/unit	$ 9.75	$ 10.00	$ 10.25
Variable cost/unit	$ 4.80	$ 5.20	$ 5.60
Fixed cost	$ 15,000	$ 18,000	$ 21,000
Depreciation: Straight-line to zero for the four-year life of the project, with no salvage value. PVCCATS does not apply.
Capital investment	$ 120,000
Required return	15%
Marginal tax rate	35%