The Rustic Welt Company is considering launching a new product. The new equipment costs $9 million and falls under straight line depreciation. The depreciation rate will be 10% each year for the next 10 years. The sale price is $8 per welt. The variable costs is a welt to $4 per welt. However, as the following table shows, there is some uncertainty about both the future number of unit sold:

	Pessimistic	Expected	Optimistic
Units sold	400,000	500,000	700,000

a. calculate the NPV for the expected case

b. Conduct a sensitivity analysis assuming a discount rate of 12%. Rustic does not pay taxes and there is no change in NWC.