You are considering a new product launch. The project will cost $$2,425,000,$ have a four$-$year life, and have no salvage value; depreciation is straight$-$line to zero. Sales are projected at $360$ units per year; price per unit will be $$19,100,$ variable cost per unit will be $$13,700,$ and fixed costs will be $$750,000$ per year. The required return on the project is $12$ percent, and the relevant tax rate is $24$ percent.

a$.$

Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here 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?