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20 pts Question Link present value table ABC Company is deciding whether to invest in new product that will require significant capital investment Complete a

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20 pts Question Link present value table ABC Company is deciding whether to invest in new product that will require significant capital investment Complete a NPV analysis to determine the project should be pursued. Please note: The Company's required rate of return is 9% New equipment would have to be acquired to produce the product. The equipment would cost $1,315.000 have a 12-year useful life, and a salvage value of $15.000 Sales over the next 12 years are projected as follows: Sales $525,000 Variable expenses $225.000 Contribution margin S200 000 Fixed expenses (including $25.000 depreciation) $135.000 Net operating income $165.000 Production and sales of the device would require working capital of $40,000 to finance accounts receivable, inventories, and day-to-day cash needs. The working capital would be released at the end of the project's life Using a piece of paper, set up a chart like the one below. Calculate the NPV of the project (Hintuse your present value table to complete) Cash Flow Years Cash Flow Present value factor Net cash flow a. The Company's NOI for the project is tround to whole dollars) b. Based upon your analysis should the company invest in the new product project Canswer yes or no Based upon your analysis is the return on investment greater than equal to or less than Canswer one of the follow greater than less than or equal to] Canan X Question 9 10 pts Lucido products manufactures Princess Peach coloring books. A contribution format income statement for a recent month appears below: Total Per units Complete for Scenario 2 Number of units Sales $100,000 $5.00 per unit Variable expenses $40.000 $2.00 per unit Contribution margin $60.000 Fred expenses $45.750 Net operating income $14.250 in the war in the table Scenario 2 Lucido products is considering lowering the price of the dolls to $450. They also plan to advertise the sale which will add $3.500 to faxed costs. They expect the lower price and increased advertising to increase unit sales by 15% Complete the chart for the contribution income statement under scenario 2 Should Lucido pursue lowering their prices and increasing advertising as outline in scenario 2 lves or no QWER

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