How do calculate the worst-case npv

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We are evaluating a project that costs $923,000, has a life of ten years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 159,000 units per year. Price per unit is $44, variable cost per unit is $21, and fixed costs are $928,538 per year. The tax rate is 23 percent, and we require a return of 13 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 19 percent.

Problem a. Calculate the best-case NPV

Problem b. Calculate the worst-case NPV

Reference no: EM132969660

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