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Hi please help me solve for npv (Related to Chechpoint 13.3) (Scenario analysis) Family Securify is considering introducing tiny GPS trackers that can bo inserted
Hi please help me solve for npv
(Related to Chechpoint 13.3) (Scenario analysis) Family Securify is considering introducing tiny GPS trackers that can bo inserted in the sole of a child's shoe, which would then allow for the tracking of that child it he or she was ever lost or abdocted. The estimates, that migha be oll by 12 percent (either above or below), associated with this new product are showit here. Since this is a new product Ine, you are not conficent in your eatimales and would like to know how well you will fare if your estrinates on the items listed above. are 12 percent higher or 12 percent lower than expected Assume that this new prodoct line will requice an initial outlay of $1.11 million, with nie warking captal investment, and will last for 10 yoars, being depreciated down to zero using straighr-line depreclation. In addition, the firm's required rate of relum or cost of capital is 97 percent and the firm's marginal tax rate is 34 percent. Calculate the projed's NPY under the "best case scenario" (that is, use the high estimates - unit price 12 percent abowe expected, variable costs 12 percent loss than expecied, fixed costs 12 percent less than expected, and expected sales 12 percent mere than erpected) Calculate the projects NPV under the "worst-case scenaris." Data table The NPV for the best case scenario wa bed (Rosind to 14 Step by Step Solution
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