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scenario analysis. the most likely outcome for a particular project are: Unit price : $50 Variable cost : $30 Fixed cost : $300,000 Expected cost

scenario analysis. the most likely outcome for a particular project are:

Unit price : $50

Variable cost : $30

Fixed cost : $300,000

Expected cost : $30,000 units per year

However, you recognize that some of these estimates are subject to error. Suppose that each variable turns out to be 10% higher or 10% lower than the initial estimates. the project will last for 10 years and require initial investment of $1 million, which will be depreciated straight line over the project's life to a final value of zero. the firm's tax rate is 35% and the require rate of return is 14%. what is the project NPV in the "best case" scenario. this is assuming all variables take on the best possible value? what about the worst case scenario?

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