Case Study Information Stankus$-$Woif Electronics is a midsized electronics manufacturer located in Tampa, Florida, The company president is Alison tyons, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than $70$ vears ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various spectatty electronic litems. Derck Rigsby, a recent MaA graduate, has been hired by the company in its finance department. One of the major revenue$-$producing items manufactured by Stankus$-$Wolf Electronics is a smartphone, Stankus$-$Wolf Electronics currently has one smartphone model on the markat and sates bave been excellent. The smartphone is a unique item in that it comes in a variety of vibrant colors and is preprogrammed to play Taylor Swift music. However, as with any electronic item, technolosy changes rapidly, and the current smartphone has limited features in comparison with newer models. Stankus$-$Wolf Electronics spent $$2\mathrm{.}2$ million to develop a prototype for a new smartphone that has all the features of the eolsting one but adds new features such as Wif tethering. The company also spent $ $475,000$ for a marketing study to determine the expected sales figures for the new smartphone. Stankut$-$Wolf Electronics can manufacture the new smartphone for $ $425$ each in variable costs. Fund costs for the operation are estimated to run $ $8\mathrm{.}5$ million per year. The estimated uates volumes are $68,000,108,000,89,000,82,000,$ and $59,000$ per year for each of the next five vears, respectively, The unit price of the new smartphone will be $ $950.$ The necesary equipment can be purchased for $ $52\mathrm{.}5$ milion and will be depreciated on a seven$-$year MACRS schedule, It is believed the value of the equipment in five years will be $ $6\mathrm{.}5$ million. Net working capital $("$NWC$)$ for the smartphone will be $20$ percent of sales and will occur with the timing of the cash flows for the vear $(1.$e$.$ there is no initial outiay for the NWC$).$ Changes in NWC thus will occur in Year $1$ with the first year's sales. Stankus$-$Wolf Electronics has a $23$ percent corporate tax rate and a required return of $12$ percent$\mathrm{.}6.$ How sensitive is the NPV to changes in the quantity sold? Assume an increase of $100$ units per year for your analysis.Cash Flows for Project: Time $012345$ NPV with additional $100$ units$/$yr Sensitivity of changes in units: