The most likely outcomes for a particular project are estimated as follows:

Unit price:	$50
Variable cost:	$30
Fixed cost:	$500,000
Expected sales:	$49,000	units per year

However, you recognize that some of these estimates are subject to error. Suppose that each variable may turn out to be either 10% higher or 10% lower than the initial estimate. The project will last for 10 years and requires an initial investment of $2.2 million, which will be depreciated straight-line over the project life to a final value of zero. The firms tax rate is 30% and the required rate of return is 12%.

a.

What is project NPV in the best-case scenario, that is, assuming all variables take on the best possible value? (Negative amount should be indicated by a minus sign. Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

NPV

$

b.	What is project NPV in the worst-case scenario? (Negative amount should be indicated by a minus sign. Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

NPV

$