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Hit or Miss Sports is Introducing a new product this yeat 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 yeat 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 545 . The varlable cost of each ball is $27 and fored 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 -line depreclation over the 12 -year life of the project. The firm's tax rate is 35% and the discount rate is this: o. If each outcome is equally likely. What is the expected NPV? ( Use the minus sign for negative volue. Round your snswer to the nenrest dollar.) Will the firm accept the project? the perpect. b. Suppose now that the firm can abandon the project and sell off the manufacturing equipment for $5.28 million if demand for the balls turns out to be weak. The firm will make the decision to continue or abandon after the first year of sales. Does the option to abandon change the firm's decision to accept the project

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