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Hit or Miss Sports is introducing a new product this year. If its see-at-night soccer balls are a hit, the firm expects to be able

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Hit or Miss Sports is introducing a new product this year. If its see-at-night soccer balls are a hit, the firm expects to be able to sell 46,600 units a year at a price of $62 each. If the new product is a bust, only 23,600 units can be sold at a price of $45. The varlable cost of each ball is $27 and flxed costs are zero. The cost of the manufacturing equipment is $5.93 million, and the project life is estimated at 12 years. The firm will use straight-ilne depreciation over the 12-year life of the project. The firm's tax rate is 35% and the discount rate is 11%. Now suppose that Hit or Miss Sports can expand production if the project is successtul. By paying its workers overtime, it can increase production by 18,000 units; the varlable cost of each ball will be higher, equal to $32 per unit By how much does this option to expand production increase the NPV of the project? Assume that the firm decides whether to expand production after it learns the first-year sales results. (Round your answer to the neorest dollor. Use annuity factor value rounded to 4 decimal places in your calculations.)

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