3 Homework Help 5 Problem 3-10 (Algo) The Tur Wheels was getting ready to stort its development project for a new product to be added to its small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dorer. The following table contains the relevant information for this project. 51,150,000 Development cont Tetsated development in Pilos teating Rap-up cost Marketing and support cool sales and production volume Chit production cont it price Interest rate + 200,000 $ 100.000 150,000 per year 60,000 per year 100 155 Tuff Wheels also has provided the project plan shown as follows. As can be seen in the project plan, the company thinks that the product life will be three years until a new product must be created Y YA YA Dom Mergand Assume all cash flows occur at the end of each period a. What is the net present value (discounted at 8%) of this project? Consider all costs and expected revenues (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.) 2 3 5 6 W E R S F. G . Homework Sveta Check my work a. What is the net present value discounted at 8%) of this project? Consider costs and expected reverenter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand) Me b. What is the impact on NPV for the kiddy Dozer if the actual sales are 50,000 per your? 70.000 per year (Enter your answerin thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.) NPV 50.000 NPV 70.000 c. Based on the original sales level of 50,000, what is the effect on NPV caused by changing discount 90%. 113? (Enter your answer in thousands of dollars. Perform all calculations using Excel Do not found any intermediate calculations Round your answer to the nearest thousand) NPVO NPV 10% NPV 11% 5 5 6 7 8 E R. . K S D G H F B. N Check my work What is the net present value (discounted at 8%) of this project? Consider all costs and expected revenues (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.) Petpro b. What is the impact on NPV for the kiddy Dozer if the actual sales are 50,000 per year? 70,000 per year? (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations, Round your answer to the nearest thousand.) NPV 50.000 NPV 70,000 c. Based on the original sales level of 60,000, what is the effect on NPV caused by changing the discount rote to 9%, 10% of 17x7 (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations Round your answer to the nearest thousand) NPV 9% NPV 10% NPV 11% M