You are considering a new product launch. the project will cost $2,100,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. sales are projected at 230 units per year; price per unit will be $18,700, variable cost per unit will be $12,500, and fixed costs will be $620,000 per year. the required return on the project is 10 percent, and the relevant tax rate is 21 percent.
required :
a. based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within +_10 percent. what are the upper and lower bounds for these projections? what is the base-case npv? what are the best-case and worst-case scenarios? (a negative answer should be indicated by a minus sign. do not round intermediate calculations. round your npv answers to 2 decimal places, e. g., 32.16. round your other answers to the nearest whole number, e. g. 32.)