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We are evaluating a project that costs $670,000, has a life of 5 years, and has...

We are evaluating a project that costs $670,000, has a life of 5 years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 59,000 units per year. Price per unit is $44, variable cost per unit is $25, and fixed costs are $760,000 per year. The tax rate is 23 percent, and we require a 16 percent return on this project. Suppose the projections given for the price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. Calculate the best case and worst case NPV figures.

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