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: $125,000$ units per year

Unit price: $$240$

Varlable cost: $$144$

Fixed cost: $$5,430,000$

The project will last for $10$ years and requires an Inltial Investment of $$21\mathrm{.}78$ million, which will be depreclated straight$-$IIne 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. In one scenarlo a sharp rise in the dollar could cause sales

to fall $30\%$ below expectations for the life of the project and, If that happens, the unit price would probably be only $$230.$ The good

news is that fixed costs could be as low as $$3,620,000,$ and varlable costs would decline in proportion to sales.

a$.$ What is project NPV if all varlables are as expected?

Note: Do not round Intermedlate calculations. Enter your answer In thousands not in millilons and round your answer to the

nearest whole dollar amount.

b$.$ What is NPV In the bad$-$case scenarlo?

Note: Do not round Intermedlate calculations. Enter your answer In thousands not in millions and round your answer to the

nearest whole dollar amount. Negatlve amount should be indlcated with a minus sign.