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1. Little Tikers Inc. is developing a small motorized vehicle for children call the Mini Bulldozer. They have developed a New Product Development (NPD) path

image text in transcribed 1. Little Tikers Inc. is developing a small motorized vehicle for children call the Mini Bulldozer. They have developed a New Product Development (NPD) path complete with forecasted demand and development costs, along with a project timeline. Here is the data for the project: Here is the project plan over the next 4 years: a) What are the yearly cash flows and their Present Value for this project with the assumptions provided in the table? 20 pts. b) What is the impact on NPV for the Mini-Dozer if the actual unit sales are 50,000 per year? (assume that PRODUCTION rate is 50,000 also) 10 pts. c) What is the impact on NPV for the Mini-Dozer at a sales rate of 80,000 per year? (assume that PRODUCTION rate is 80,000 also) 10 pts. d) What is the effect on Question C if the discount rate changes to 10 percent? 10 pts. 1. Little Tikers Inc. is developing a small motorized vehicle for children call the Mini Bulldozer. They have developed a New Product Development (NPD) path complete with forecasted demand and development costs, along with a project timeline. Here is the data for the project: Here is the project plan over the next 4 years: a) What are the yearly cash flows and their Present Value for this project with the assumptions provided in the table? 20 pts. b) What is the impact on NPV for the Mini-Dozer if the actual unit sales are 50,000 per year? (assume that PRODUCTION rate is 50,000 also) 10 pts. c) What is the impact on NPV for the Mini-Dozer at a sales rate of 80,000 per year? (assume that PRODUCTION rate is 80,000 also) 10 pts. d) What is the effect on Question C if the discount rate changes to 10 percent? 10 pts

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