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We are evaluating a project that costs $520,000, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over

We are evaluating a project that costs $520,000, has a six-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 65,000 units per year. Price per unit is $45, variable cost per unit is $30, and fixed costs are $840,000 per year. The tax rate is 35 percent, and we require a return of 10 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 10 percent. Calculate the best-case and worst-case NPV figures. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. Best-case $584,621, worst case $ $285,079 b. Best-case $2,026,176.65, worst case $ $1,761,593.58 c. Best-case $88,832.77, worst case $1,510,000 d. None of the above

When I calculated it myself I got :

worst case -$1,761,594.09

best case $2,026,176.14

If you notice it is very close to answer b so I am asking you to calculate it to see if you get a different answer than I did, or am I correct? Thank you

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