Homework Answers
1. Worst Case NPV:
The cash flows for the project is $5,37,000 and it can possible to receive after 7 Years. So we can calculate
-$537000 + $537000/(1.12)^7 = $ 294,088
2. Best Case Scenario:
The project cost $537,000 so we assume as per given period that it takes 7 years to for the project cost. So we can say that the project cost NPV depends upon the net cash flows coming in a year and it has difficult measure the figure. So best case NPV is impossible to measure.
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