You are considering a proposal to produce and market a new sluffing machine. The most likely outcomes for the project are as follows:

Expected sales: $55,000$ units per year

Unit price: $$100$

Variable cost: $$60$

Fixed cost: $$1,650,000$

The project will last for $10$ years and requires an initial investment of $$1\mathrm{.}52$ million, which will be depreciated straight$-$line over the

project life to a final value of zero. The firm's tax rate is $30\%,$ and the required rate of return is $12\%.$

However, you recognize that some of these estimates are subject to error. Sales could fall $30\%$ below expectations for the life of the

project and, if that happens, the unit price would probably be only $$90.$ The good news is that fixed costs could be as low as

$$1,100,000,$ and variable costs would decline in proportion to sales.

a$.$ What is project NPV if all variables are as expected? $($Do not round intermediate calculations. Enter your answer in thousands not

in millions and round your answer to the nearest whole dollar amount.$)$

NPV

b$.$ What is NPV in the worst$-$case scenario? $($Do not round intermediate calculations. Enter your answer in thousands not in millions

and round your answer to the nearest whole dollar amount. Negative amount should be indicated with a minus sign.$)$

NPV