The mostly outcomes for particular project

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The mostly outcomes for a particular project are estimated as follows:

Unit Price: $50

Variable Cost: $30

Fixed Cost: $490000

Expected sales: 48000 units per year

however, you recognize that some of the estimates are subject to error. Suppose that each variable may turn out to be either 10% higher or 10% lower than the initial estimate. the project will last for 10 years and require an initial investment of $2.3 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 10%

What is the best case scenario NPV

What is the worst case scenario NPV

preferably in excel with formulas please

Reference no: EM131986934

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