You are considering a new product launch. The project will cost $$960,000,$ have a $5-$year life, and have no salvage value; deciation

is straight$-$line to zero. Sales are projected at $350$ units per year; price per unit will be $$15,955,$ variable cost per unit will be $$12,000,$

and fixed costs will be $$625,000$ per year. The required return on the project is $10$ percent, and the relevant tax rate is $23$ percent.

Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within

$+-10$ percent.

a$.$ What are the best$-$case and worst$-$case NPVs with these projections?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your

answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ What is the base$-$case NPV$?$

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

c$.$ What is the sensitivity of your base$-$case NPV to changes in fixed costs?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your

answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$