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

Expected sales: $27,526$ units per year

Unit Price: $$50$

Variable Cost: $$25$

Fixed Cost: $$300,000$

The project will last for $10$ years and requires an initial investment of $$1$ 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 $12\%.$

But 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 $$40.$ The good news is that fixed costs could be as low as $$200,000,$ and variable costs would decline in proportional to sales.

What is the NPV in the worst$-$case scenario?