ell matic sewing machine to at $200, and management ertainty about production estimated operating costs 3. Keener Clothiers Inc. is considering investing $2 million in an automatic sewing mad produce a newly designed line of dresses. The dresses will be priced at $200, and me expects to sell 12,000 per year for six years. There is, however, some uncertainty abo costs associated with the new machine. The production department has estimated at at 70% of revenues, but senior management realizes that this figure could turn out to be al 65% or as high as 75%. The new machine will be depreciated at a rate of $200,000 per line, zero salvage). Keener's cost of capital is 14%, and its marginal tax rate is 35%. Calela estimate along with best- and worst-case scenarios for the project's NPV. 4. Assume that Keener Clothiers of the previous problem assigns the following probabilities to production cost as a percent of revenue. $200,000 per year (straight tax rate is 35%. Calculate a point .30 % of Revenue Probability 65% 70 .50 75% .20 Sketch a probability distribution (histogram) for the project's NPV, and compute its expected NPV. .L..L a initialaach antlar