You are considering a new product launch. The project will cost $$1\mathrm{.}675$ million, have a four$-$year life, and have no salvage value; depreciation is straight$-$line to zero. Sales are projected at $195$ units per year; price per unit will be $$16,300$; variable cost per unit will be $$9,400$; and fixed costs will be $$550,000$ per year. The required return on the project is $12$ percent and the relevant tax rate is $21$ percent.

a$.$ Based on your experience, you think the unit sales, variable cost, and fixed cost projections given above are probably accurate to within $\backslash$pm $10$ percent. What are the upper and lower bounds for these projections? What is the base$-$case NPV$?$ What are the best$-$case and worst$-$case scenarios? $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your NPV answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$You are considering a new product launch. The project will cost $$1\mathrm{.}675$ million, have a four$-$year life, and have no salvage value; depreciation is straight$-$line to zero. Sales are projected at $195$ units per year; price per unit will be $$16,300$; variable cost per unit will be $$9,400$; and fixed costs will be $$550,000$ per year. The required return on the project is $12$ percent and the relevant tax rate is $21$ percent.

a$.$ Based on your experience, you think the unit sales, variable cost, and fixed cost projections given above are probably accurate to within $\backslash$pm $10$ percent. What are the upper and lower bounds for these projections? What is the base$-$case NPV$?$ What are the best$-$case and worst$-$case scenarios? $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your NPV answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$