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HELP ASAP Data table (Related to Checkpoint 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be inserted in the sole
HELP ASAP
Data table (Related to Checkpoint 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be inserted in the sole of a childs shoe, which would then allow for the tracking of that child if he or she was ever lost or abducted. The estimates, that enight be of by 9 percent (either above or below), associated weth this new product are shown here: is a new product line, you are not confident in your estimates and would like to know how well you wil fare if your esfimates on the riems listed above aro 9 percent higher or 9 percent lower than expected. Assume that this new product line will require an initial outlay of $1.03 millon, with no working capital investment, and wifl last for 10 years, being deprecialed down to zeeo using straight-line depreciation. in addition, the firm's required rate of retum or cost of capital is 9.8 percent, and the fromis marginal tax rate is 34 percent. Calculate the propect's NPV under the "best-case sconario" (that is, uso the high estimates - unit price 9 porcont above expected, variable costs 9 percent less than oxpected, fxed ooss 9 percont iess than expectod, and expected sales 9 percent more than expected). Calculate the project's NeV under the "worst-case scenario," The NPV for the best-ase scenario wit be $ (Round to the nearest dolar.) Step by Step Solution
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