We are evaluating a project that costs $933,000, has a life of nine years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 127,000 units per year. Price per unit is $35, variable cost per unit is $20, and fixed costs are $935,799 per year. The tax rate is 23 percent, and we require a return of 19 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 12 percent.

Calculate best-case npv

Calculate worst-case npv