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core:0 of 10 pts 1 of 8 (0 complete) HW Score: 0%, 0 of 80 pts P13-6 (similar to) Question Help Related to Checkpoint 13.3)

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core:0 of 10 pts 1 of 8 (0 complete) HW Score: 0%, 0 of 80 pts P13-6 (similar to) Question Help Related to Checkpoint 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be inserted in the sole of a chikt's shoe, which would then allow for the tracking of that child it he or she was ever lost or abducted The estimates, that might be off by 11 percent (either above or below), associated with this new product are shown here Since this is a new product line, you are not contdent in your estimates and would like to know how well you will tare if your estimates on the items listed above are 11 percent higher or 11 percent lower than expected. Assume that this new product line will require an intial outlay of $1 12 million, with no working capital investment, and will last for 10 years capital is 10.2 percent, and the being depreciated down to zero using straight-line depreciation. In addition, the firm's required rate of return or cost of hrm's marginal tax rate is 34 percent. Calculate the projects NPV under the "best-case scenario" (that is, use the high tes-unit price 11 percent above expected, variable costs 11 percent less than expected, fxed costs 11 percent less than expected, and expected sales 11 percent more than expected) Calculate the project's NPV under the worst-case scenario (Round to the nearest dollar) The NPV for the best-case scenario will be s part remaining search point 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be inserted would then allow for the tracking of that child if he or she was ever lost or abducted. The estimates, that might be low), associated with this new product areshown here Since this is a ne product l ne you are not confide d like to k that this down to z rate is 34 ariable cos te the pro 11 percent , and will la al is 10.2p nates-uni es 11 perce Data Table Unit price Variable costs. $79 Fixed costs Expected sales 11,000 per year $127 est-case s $251,000 per year PrintDone er in the answer box and then click Check Answer e

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