correct answers?

CCM Ltd is planning to introduce a new product. It expects to sell 10.000 units per year and generate $50 as net cash flow per unit. The initial investment in manufacturing equipment is $2.000.000 PLM can abandon the product line after the first year and sell the manufacturing equipment for $1,600,000. The relevant discount rate is 15. The life of the project is 10 years. (a) Calculate the NPV for the investment ignoring the abandonment option [1 marks) (b) If the expected sales are revised based on the first year's performance at what level of expected sales would make sense to abandon the project? (11 marks) (c) 0 Itis ikely that expected sales wil be revised upward to 11.000 units if the first year is a success and revised downward to 6,000 units if the first year is not a success Success and failure are equalyikety Calculate the NPV of the investment in the new product (consider the possibility of abandonment it is not a success) (11 maria) the value of the cotion to abandon the new product the (6 marks) CCM Ltd is planning to introduce a new product. It expects to sell 10.000 units per year and generate $50 as net cash flow per unit. The initial investment in manufacturing equipment is $2.000.000 PLM can abandon the product line after the first year and sell the manufacturing equipment for $1,600,000. The relevant discount rate is 15. The life of the project is 10 years. (a) Calculate the NPV for the investment ignoring the abandonment option [1 marks) (b) If the expected sales are revised based on the first year's performance at what level of expected sales would make sense to abandon the project? (11 marks) (c) 0 Itis ikely that expected sales wil be revised upward to 11.000 units if the first year is a success and revised downward to 6,000 units if the first year is not a success Success and failure are equalyikety Calculate the NPV of the investment in the new product (consider the possibility of abandonment it is not a success) (11 maria) the value of the cotion to abandon the new product the (6 marks)