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An electric vehicle company is debating whether to replace its original model, the REV - Touring, with a new model, the REV - Sport. Using

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 net present value discount rate of 5%. How sensitive is the result to the estimated variable cost of the REV-Sport? How might this affect the decision?
(i) Click the icon to view the REV-Sport and REV-Touring information.
(Iype whole numbers.)
\table[[{
\table[[,A],[1,REV-Sport]]},B,C,D,E],[,,,,],[2,Selling Price,$,,,,],[3,First-Year Sales,,,,,],[4,Variable Cost,$,,,,],[5,Final Dev Cost,$,,,,],[6,Retooling Cost,$,,,,],[7,,,,,,],[8,,Year 1,,Year 2,Year 3,Year 4],[9,Annual Sales,,grad,grad,grad,grad
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