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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 REVTouring, with a new model, the REVSport. Using the accompanying information, develop a fouryear model to predict the profitability of each vehicle and recommend the best decision using a net present value discount rate of How sensitive is the result to the estimated variable cost of the REVSport? How might this affect the decision?
i Click the icon to view the REVSport and REVTouring information.
Iype whole numbers.
table
tableAREVSportBDESelling Price,$FirstYear Sales,,,,,Variable Cost,$Final Dev Cost,$Retooling Cost,$Year Year Year Year Annual Sales,,grad,grad,grad,grad
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