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Hi can I get help on this question Thank you Content Do Homework - Homework Do Homework - Homework FIN3310_2022 spring(20682) Veronica Hernandez 04/21/22 5:26
Hi can I get help on this question
Content Do Homework - Homework Do Homework - Homework FIN3310_2022 spring(20682) Veronica Hernandez 04/21/22 5:26 AM Homework: Homework 10 Question 1, P13-6 (similar to) HW Score: 0%, 0 of 80 points Save Part 1 of 2 O Points: 0 of 10 Related to Checkpoint 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be inserted in the role of a child's shoe, which would then slow for the tracking of that child if he or she was over lost or abducted. The estimates that might be off by 10 percent (either above or below), associated with this new product are shown here. Since this is a new product line, you are not confident in your estimates and would like to know how well you will fare your estimates on the tems listed above are 10 percent higher or 10 percent lower than expected. Assume that this new product line will require an initial outlay of $1.06 milion, with no working capital investment, and will last for 10 years, being depreciated down to uro uning straight-line depreciation. In addition, the firm's required rate of return or cost of capital is 10.3 percent, and the firm's marginal tax rate is 34 percent Calculate the project's NPV under the best case scenario" (that is use the high estimates-unit price 10 percent above expected variable costs 10 percent less than expected, fixed costs 10 percent less than expected, and expected sales 10 percent more than expected) Calculate the project's NPV under the worst-case scenario GUES The NPV for the best-case scenario will be $(Round to the norost dolar) er lost or abducted. The estimates, that might be off by 10 percent (either above or below), associated with this new produ ent in your estimates and would like to know how well you will fare if your estimates on the items listed above are 10 perce et line will require an initial outlay of $1.06 million, with no working capital investment, and will last for 10 years, being depre e firm's required rate of return or cost of capital is 10.3 percent, and the firm's marginal tax rate is 34 percent. Calculate th 5-unit ess than es the pro Data table - X be s Unit price: $128 Variable costs: $76 Fixed costs: $255,000 per year Expected sales: 10,100 per year (Click on the icon in order to copy its contents into a spreadsheet.) Print Done Thank you
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