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

Unit Price = 50

Variable Cost = 30

Expected Sales = 30,000 units/year

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 $1M, which will be depreciated straight line over the life to a final value of $0.The firms tax rate is 35% and the required rate of return is 12% (LO10-2).

1. What is the NPV in the best case scenario, all variables take on the best possible value?
2. What is the worst-case scenario?