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Scenario Analysis The most likely outcomes for a particular project are estimated as follows: Unit price: $ 5 0 Variable cost: $ 3 0 Fixed

Scenario Analysis
The most likely outcomes for a particular project are estimated as follows:
Unit price: $50
Variable cost: $30
Fixed cost: $300,000
Expected Sales: 30,000 units per year
However, you recognized that some of these estimates are subject to error. Suppose that each of the above variables may turn out to be either 10% higher or 10% lower than the estimate. The project will last for 10 years and requires an initial investment of $1 million. The firm's tax rate is 35% and the required rate of return is 14%. What is the project NPV in the "best-case" scenario that is assuming all variables take on the best possible value? What about the "worst-case" scenario?
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