We are evaluating a project that costs $845,000, has an eight-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 51,000 units per year. Price per unit is $53, variable cost per unit 2 is $27, and fixed costs are $950,000 per year. The tax rate is 22 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. 34567 4 Input area: Initial cost Project life $845,000 8 8 Units sales 51,000 9 Price per unit $53 10 Variable cost per unit $27 11 Fixed costs $950,000 22% 10% 10% 10% 10% 10% 12 Tax rate 13 Required return 14 Price uncertainty 15 Quantity uncertainty 16 Variable cost uncertainty 17 Fixed cost uncertainty 18 19 (Use cells A6 to B17 from the given information to complete this question. You must use the built-in Excel function to answer this 20 question. The OCF must be calculated using the depreciation tax shield approach.) 21 22 Output area: 23 24 Scenario 25 Best-case 26 Worst-case 27 Best-case OCF 28 Best-case NPV 29 Worst-case OCF 30 Worst-case NPV 31 Unit sales Unit price Unit variable cost Fixed costs