unit price: $50

Variable:$30

Fixed Cost: $360,000

Expected Sales: 35,000 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 $1.6 million, which will be depreciated straight-line over the project life to a final value of zero. The firms tax rate is 35% and the required rate of return is 12%.

What is project NPV inthe worst-case scenario?