Unit price:$50

Variable cost: $30

Fixed Cost: $430,000

Expected Sales:42,000 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% high or 10% lower than the initial estimate. The project will last for 10 years and requires an initial investment of $1.9 million, which will be depreciate straight line over the project life to a final value of zero. The firm's tax rate is 35% 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?