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We are evaluating a project that costs $993,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over

We are evaluating a project that costs $993,000, 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 94,000 units per year. Price per unit is $41, variable cost per unit is $28, and fixed costs are $1,009,881 per year. The tax rate is 37 percent, and we require a 13 percent return on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 20 percent.

Required:
(a) Calculate the best-case NPV. (Do not round your intermediate calculations.)

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$4,703,003

$5,924,242

$5,628,030

$6,220,454

$883,581

(b) Calculate the worst-case NPV. (Do not round your intermediate calculations.)

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$-3,837,745

$883,581

$-1,291,464

$6,220,454

$-4,618,205

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