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

Unit price:	$	40
Variable cost:	$	20
Fixed cost:	$	350,000
Expected sales:		34,000	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 $1.2 million, which will be depreciated straight-line over the project life to a final value of zero. The firms tax rate is 21% and the required rate of return is 10%.

a. What is project NPV in the best-case scenario, that is, assuming all variables take on the best possible value?

b. What is project NPV in the worst-case scenario?