An electric vehicle company is debating whether to replace its original model, the REV-Touring, with a new model, the REV-Sport Using the accompanying information, develop a four-year model to predict the profitability of each vehicle and recommend the best decision using a not present value discount rate of 6% How sensitive is the result to the estimated variable cost of the REV-Sport? How might this affect the decision? Click the icon to view the REV-Sport and REV-Touring information Create a model for the REV-Sport B. $ (Type whole numbers.) A 1 REV-Sport 2 Selling Price 3 First-Year Sales 4 Variable Cost 5 Final Dev Cost 6 Retooling Cost 7 8 9 Annual Sales $ $ Year 1 Year 2 Year 3 Year 4 Y 10 Revenue 11 Total Variable Cost v G 12 Not Profit 13 14 Net Present Value - NPVBE -B5-B Perform the calculations from the spreadsheet that was created in the previous stop and then comert your answer into millions of dollars The not present value for REV-Sport is million (Round to the nearest million dollars as needed) Extend the same spreadsheet to create a model for the REV-Touring Type whole numbers H 1 REV Touring Selling Price 5 3 Next-Year Sales Variable Cost $ Final Dev Cost $ 6 Retooling Cost $ 7 Year 1 Year 2 Yoar Year 9 Annual Sales MORevenue 11 Total Variable Cost 12 Not Profit 13 14Net Present Value - NPL Pedom to calculations from the spreadshoot that was created in the previous stop and then convert your answer to millions of dollars The not presenta o for REV-Touring is s_ million Round to the nearest million dollars as needed 5 7 Y Y 7 Usung a not procent value discounttate of the best decision is to produce the because thasa Y not present value vanale cost of REV.Sport was increased by a small amount, w51000 per the best decision is to produce the because has a ne prosent value. This indicates that it benisky to producere Rescort because all change in the variable cost REV-Sport and REV-Touring Whatever vehicle is chosen will be produced for the next four years, after which time a reevaluation will be necessary. The REV-Sport is ready for the final design and manufacturing phases. Final development costs are estimated to be $70 million and the new fixed costs for retooling are estimated to be $550 million. The REV-Sport is expected to sell for $40,000. The first-year sales for the REV-Sport is estimated to be 60,000, with a sales growth for the subsequent years of 5% per year. The variable cost per vehicle is uncertain until the design and supply-chain decisions are finalized, but is estimated to be $33,000. Next-year sales for the REV-Touring are estimated to be 50,000, but the sales are expected to decrease at a rate of 10% for each of the next three years. The selling price is $37,000. Variable costs per vehicle are $32,000. Since the model has been in production, the fixed costs for development have already been recovered. Print Done Whatever vehicle is chosen will be produced for the next four years, after which time a reevaluation will be necessary. The REV-Sport is ready for the final design and manufacturing phases. Final development costs are estimated to be $70 million and the new fixed costs for retooling are estimated to be $550 million. The REV-Sport is expected to sell for $40,000. The first-year sales for the REV-Sport is estimated to be 60,000, with a sales growth for the subsequent years of 5% per year. The variable cost per vehicle is uncertain until the design and supply-chain decisions are finalized, but is estimated to be $33,000. Next-year sales for the REV-Touring are estimated to be 50,000, but the sales are expected to decrease at a rate of 10% for each of the next three years. The selling price is $37,000. Variable costs per vehicle are $32,000. Since the model has been in production, the fixed costs for development have already been recovered. An electric vehicle company is debating whether to replace its original model, the REV-Touring, with a new model, the REV-Sport Using the accompanying information, develop a four-year model to predict the profitability of each vehicle and recommend the best decision using a not present value discount rate of 6% How sensitive is the result to the estimated variable cost of the REV-Sport? How might this affect the decision? Click the icon to view the REV-Sport and REV-Touring information Create a model for the REV-Sport B. $ (Type whole numbers.) A 1 REV-Sport 2 Selling Price 3 First-Year Sales 4 Variable Cost 5 Final Dev Cost 6 Retooling Cost 7 8 9 Annual Sales $ $ Year 1 Year 2 Year 3 Year 4 Y 10 Revenue 11 Total Variable Cost v G 12 Not Profit 13 14 Net Present Value - NPVBE -B5-B Perform the calculations from the spreadsheet that was created in the previous stop and then comert your answer into millions of dollars The not present value for REV-Sport is million (Round to the nearest million dollars as needed) Extend the same spreadsheet to create a model for the REV-Touring Type whole numbers H 1 REV Touring Selling Price 5 3 Next-Year Sales Variable Cost $ Final Dev Cost $ 6 Retooling Cost $ 7 Year 1 Year 2 Yoar Year 9 Annual Sales MORevenue 11 Total Variable Cost 12 Not Profit 13 14Net Present Value - NPL Pedom to calculations from the spreadshoot that was created in the previous stop and then convert your answer to millions of dollars The not presenta o for REV-Touring is s_ million Round to the nearest million dollars as needed 5 7 Y Y 7 Usung a not procent value discounttate of the best decision is to produce the because thasa Y not present value vanale cost of REV.Sport was increased by a small amount, w51000 per the best decision is to produce the because has a ne prosent value. This indicates that it benisky to producere Rescort because all change in the variable cost REV-Sport and REV-Touring Whatever vehicle is chosen will be produced for the next four years, after which time a reevaluation will be necessary. The REV-Sport is ready for the final design and manufacturing phases. Final development costs are estimated to be $70 million and the new fixed costs for retooling are estimated to be $550 million. The REV-Sport is expected to sell for $40,000. The first-year sales for the REV-Sport is estimated to be 60,000, with a sales growth for the subsequent years of 5% per year. The variable cost per vehicle is uncertain until the design and supply-chain decisions are finalized, but is estimated to be $33,000. Next-year sales for the REV-Touring are estimated to be 50,000, but the sales are expected to decrease at a rate of 10% for each of the next three years. The selling price is $37,000. Variable costs per vehicle are $32,000. Since the model has been in production, the fixed costs for development have already been recovered. Print Done Whatever vehicle is chosen will be produced for the next four years, after which time a reevaluation will be necessary. The REV-Sport is ready for the final design and manufacturing phases. Final development costs are estimated to be $70 million and the new fixed costs for retooling are estimated to be $550 million. The REV-Sport is expected to sell for $40,000. The first-year sales for the REV-Sport is estimated to be 60,000, with a sales growth for the subsequent years of 5% per year. The variable cost per vehicle is uncertain until the design and supply-chain decisions are finalized, but is estimated to be $33,000. Next-year sales for the REV-Touring are estimated to be 50,000, but the sales are expected to decrease at a rate of 10% for each of the next three years. The selling price is $37,000. Variable costs per vehicle are $32,000. Since the model has been in production, the fixed costs for development have already been recovered