Business Finance CRN 11393 (1) Amands Prausto al 11/27/20 6:11 PM Homework: Chapter 13 Homework Save Score: 0 of 6 pts 1 of 2 complete HW Score: 096, 0 of 9 pts P13-7 (similar to) Question Help Related to Checkpoint 13.2 and Checkpoint 13.5) (Comprehensive risk analysis) Blinkeriais considering introducing a new line of hand carriers that can be used to copy material and then download it into a personal computer. These scanners are expected to set for an average price of $95 each, and the company analysts performing the analysis expect that the firm can tol 108.000 unts per year at this price for a period of five years, after which time they expect demand for the product to end as a result of new technology. In addition, variable costs we expected to be 521 per unit and fixed costs, not including depreciation are forecast to be 51.100.000 per year. To manufacture this product, Blinkera will need to buy a computerized production machine for 59.7 million that has no residual or salvage value and will have an expected ife of five years. In addition, the fom expects it will have to invest an addition 5304.000 in working capital to wpport the business Oper pertinent information concerning the business venture is provided here .. Calculate the projects PV. b. Determine the sensitivity of the projects NPV 10 (n) 9 percent decrease in the number of units Bold c. Determine the envity of the project's NPV to in percent decrease in the price per unit d. Determine the sensitivity of the projects NPV town) percent increase in the vario con perunt e. Determine the sensitivity of the project's NPV to 9 percent increase in the annual fed operating costs 1. Use scenario analysis to evaluate the projects NPV under worst and best case scenarios for the project's value driver. The values for the expected or base came along with the worst and best case scenario ad here The NPV for the base-case will be $ (Round to the nearest dolar) Enter your answer in the answer box and then click Check Answer Business Finance CRN 11393 (1) Amands Prausto al 11/27/20 6:11 PM Homework: Chapter 13 Homework Save Score: 0 of 6 pts 1 of 2 complete HW Score: 096, 0 of 9 pts P13-7 (similar to) Question Help Related to Checkpoint 13.2 and Checkpoint 13.5) (Comprehensive risk analysis) Blinkeriais considering introducing a new line of hand carriers that can be used to copy material and then download it into a personal computer. These scanners are expected to set for an average price of $95 each, and the company analysts performing the analysis expect that the firm can tol 108.000 unts per year at this price for a period of five years, after which time they expect demand for the product to end as a result of new technology. In addition, variable costs we expected to be 521 per unit and fixed costs, not including depreciation are forecast to be 51.100.000 per year. To manufacture this product, Blinkera will need to buy a computerized production machine for 59.7 million that has no residual or salvage value and will have an expected ife of five years. In addition, the fom expects it will have to invest an addition 5304.000 in working capital to wpport the business Oper pertinent information concerning the business venture is provided here .. Calculate the projects PV. b. Determine the sensitivity of the projects NPV 10 (n) 9 percent decrease in the number of units Bold c. Determine the envity of the project's NPV to in percent decrease in the price per unit d. Determine the sensitivity of the projects NPV town) percent increase in the vario con perunt e. Determine the sensitivity of the project's NPV to 9 percent increase in the annual fed operating costs 1. Use scenario analysis to evaluate the projects NPV under worst and best case scenarios for the project's value driver. The values for the expected or base came along with the worst and best case scenario ad here The NPV for the base-case will be $ (Round to the nearest dolar) Enter your answer in the answer box and then click Check
