Tom is evaluating a project that costs $850,000, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 83,000 units per year, price per unit is $50, variable cost per unit is $20, and fixed costs are $2 million per year. The tax rate is 21%, and the required rate of return on the project is 12%.

1. Calculate the NPV for the project. (Round to 2 decimals)

2. Calculate the accounting break-even number of units for the project. (Round to 2 decimals)

3. Calculate the equivalent annual cost of the machine. (Round to 2 decimals)

4. Calculate the financial breakeven number of units for the project. (Round to 2 decimals)

5. Suppose the projections given for price, quantity, VC per unit, and FC are accurate within +/- 15%. Calculate the best case NPV. (Round 2 decimals)

6. Suppose the projections given for price, quantity, VC per unit, and FC are accurate within +/- 15%. Calculate the worst-case NPV. (Round 2 decimals)