You are considering a new product launch. The plant and equipment will cost $1.9 million, have a five year life, and be depreciated on a straight line basis to zero salvage value. Sales are projected at 15,500 units per year, price per unit will be $153, variable cost per unit will be $67, and fixed costs will be $900,000 per year. The project will require an investment in inventory of $150,000 to be returned at the end of the project. The require return on the project is 12% and the tax rate is 22%. Based on your knowledge, you feel that the price and ficed costs are accurate to within +/- 15% and units per year and variable costs are accurate to within +/- 10%. Show a table with the base case, best case and worst case values for the project. Also, calculate the NPV and IRR for the worst-case scenario.

Equipment	$ 1,900,000
Project life (years)	5
Units per year	15,500
Price per unit	$ 153
Variable cost per unit	$ 67
Fixed costs	$ 900,000
NWC	$ 150,000
Required return	12%
Tax rate	22%
Uncertainty
Price	15%
Units per year	10%
Variable cost	10%
Fixed cost	15%