Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 145,000 units per year. Price per unit is $44, variable cost per unit is $24, and fixed costs are $857,675 per year. The tax rate is 38 percent, and we require a 16 percent return on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 12 percent.
Calculate the best-case NPV. (Do not round your intermediate calculations.)
(b) Calculate the worst-case NPV. (Do not round your intermediate calculations.)