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The most llkely outcomes for a particular project are estimated as follows: However, you recognize that some of these estimates are subject to error. Suppose
The most llkely outcomes for a particular project are estimated as follows: However, you recognize that some of these estimates are subject to error. Suppose each varlable turns out to be elther 10% higher or 10% lower than the Initial estimate. The project will last for 10 years and requires an Initial Investment of $1.4 million, which will be depreclated straight-Iine over the project Ilfe to a final value of zero. The firm's tax rate 1521%, and the required rate of return is 14%. a. What is project's NPV in the best-case scenario, that is, assuming all varlables take on the best possible value? b. What is project's NPV in the worst-case scenarlo? Note: For all the requirements, a negatlve amount should be Indicated by a minus sign. Enter your answers in dollars, not in milllons. Do not round Intermedlate calculatlons. Round your answers to the nearest dollar amount
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