We are evaluating a project that costs $992,000, has a life of twelve years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 159,000 units per year. Price per unit is $37, variable cost per unit is $24, and fixed costs are $993,984 per year. The tax rate is 24 percent, and we require a return of 12 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 17 percent.

Calculate the best-case NPV?

• 15,713,923
• $14,122,926
• $6,976,578
• $16,499,619
• $14,928,227

Calculate the worst-case NPV.?

• -4,710,043
• $-3,119,046
• $1,950,586
• $6,976,578
• $16,499,619