Q2. Suppose you are considering the following project with most-likely values: • Project life = 6 years Required investment= $1,000,000 • Salvage value = 80,000 • Depreciation method = 5-year MACRS •...

Extracted text: Q2. Suppose you are considering the following project with most-likely values: • Project life = 6 years Required investment= $1,000,000 • Salvage value = 80,000 • Depreciation method = 5-year MACRS • Sales volume = 65,000 units annually • Price per unit = $60 • Variable cost per unit - $40 • Fixed annual cost = $532,000 Tax rate = 35% • MARR = 20% (a) Compute the NPW for the most likely case showing all computations. (b) If you were told that the unit price, anmual sales volume, unit variable costs, and fixed costs are all accurate to within +15%, what would be the NPW in the best-case and in the worst case?