We are evaluating a project that costs $726,000, has a life of fourteen years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 125,000 units per year. Price per unit is $38, variable cost per unit is $27, and fixed costs are $736,164 per year. The tax rate is 23 percent, and we require a return of 17 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 19 percent.

a. Calculate the best-case NPV.

b. Calculate the worst-case NPV.