Homework: Chapter 13 Homework Save Score: 0 of 6 pts 1 of 2 (0 complete HW Score: 0%, 0 of 9 pts P13-7 (similar to) Question Help (Related to Checkpoint 13.2 and Checkpoint 13.3) (Comprehensive risk analysis) Blinkeriais considering introducing a new line of hand scanners that can be used to copy material and then download it into a personal computer. These scanners are expected to sell for an average price of $101 cach, and the company analysis performing the analysis expect that the firm can sell 102,000 units per year at this price for a period of five years after which time they expect demand for the product to and as a result of new technology in addition, variable costs are expected to be $19 per unit and fixed costs, not including depreciation are forecast to be $1.000.000 per year. To manufacture this product, Blinkera will need to buy a computerized production machine for $9.2 million that has no residual or salvage value and will have an expected of five years. In addition, the firm expects will have to invest an additional $300.000 in working capitato support the new business. Other pertinent information concerning the business venture is provided here: a. Calculate the project's NPV b. Determine the sensitivity of the project's NPV to ain) 8 percent decrease in the number of units sold c. Determine the sensitivity of the project's NPV to ain) percent decrease in the price per unit. d. Determine the sensitivity of the projec's NAV Ioan) 8 percent increase in the variable cost per unit e. Determine the sensitivity of the project's NPV to ain) 8 percent increase in the annual fixed operating costs 1. Use scenario analysis to evaluate the project's NPV under worst and best-case scenarios for the project's value drivers. The values for the expected or base-case along with the worst- and a. The NPV for the base case will be $ (Round to the nearest dollar) 1 of 2 (0 complete) point 13.3) (Comprehensive risk analysis) Blinkeria is considering introducing a new line of hand scanners that ca These pannor. On arnasted to call foran ANN Analvete performing the a eriod off Jology. In addit ing depre Data Table ed to buy a cor e value, In additional $3 ation con $9,200,000 5 years 's NPV to 's NPV to 's NPV to 's NPV to broject's Initial cost of the machine Expected life Salvage value of the machine Working capital requirement Depreciation method Depreciation expense Cash fixed costs-excluding depreciation Variable costs per unit Required rate of return or cost of capital Tax rate xpected or bas 7. (Rour $300,000 straight line $1,840,000 per year $1,060,000 per year $19 9% 34% Print Done nd then Chor UNOKATSWET. Clear All P13-7 (similar to) Question Help then download it into a personal computer. These scanners are expected to sell for an average price of $101 each and the company analysts performing the analysis expect that the firm canse 102.000 units per year at this price for a period of five years, wer which time they expect demand for the product to end a rest of new technology. In addition, variable costs are expected to be $19 per unit and fixed costs, not including depreciation are forecast to be $1 050 000 per year. To manufacture this product. Blinkeria will need to buy a computerized production machine for $9.2 million that has no residual or salvage value and will have an expected of five years. In addition, the firm expects will have to invest an additional $300,000 in working capital to support the new business. Other pertinent information concerning the business venture is provided here: a. Calculate the project's NPV. b. Determine the sensitivity of the project's NPV to ain) 8 percent decrease in the number of units sold c. Determine the sensitivity of the project's NPV to ain) 8 percent decrease in the price per unit. d. Determine the sensitivity of the project's NPV to ain) 8 percent increase in the variable cost per unit e. Determine the sensitivity of the project's NPV to ain) 8 percent increase in the annual fixed operating costs. 1. Use scenario analysis to evaluate the project's NPV under worst and best-case scenarios for the project's value drivers. The values for the expected or base-case along with the worstand best-case scenarios are listed here: Data Table a. The NPV for the base-case will be $ (Round to the new Best Case Unit sales Price per unit Variable cost per unit Cash fixed costs per year Depreciation expense Expected or Base Case 102,000 $101 $(19) ${1.000.000) ${1.840,000) Worst Case 70,380 S88 321.28) ${1.262.600) $(1.840,000) $119.18 ${1729) $(932,800) $11.840,000) Enter your answer in the answer box and then click Check Homework: Chapter 13 Homework Save Score: 0 of 6 pts 1 of 2 (0 complete HW Score: 0%, 0 of 9 pts P13-7 (similar to) Question Help (Related to Checkpoint 13.2 and Checkpoint 13.3) (Comprehensive risk analysis) Blinkeriais considering introducing a new line of hand scanners that can be used to copy material and then download it into a personal computer. These scanners are expected to sell for an average price of $101 cach, and the company analysis performing the analysis expect that the firm can sell 102,000 units per year at this price for a period of five years after which time they expect demand for the product to and as a result of new technology in addition, variable costs are expected to be $19 per unit and fixed costs, not including depreciation are forecast to be $1.000.000 per year. To manufacture this product, Blinkera will need to buy a computerized production machine for $9.2 million that has no residual or salvage value and will have an expected of five years. In addition, the firm expects will have to invest an additional $300.000 in working capitato support the new business. Other pertinent information concerning the business venture is provided here: a. Calculate the project's NPV b. Determine the sensitivity of the project's NPV to ain) 8 percent decrease in the number of units sold c. Determine the sensitivity of the project's NPV to ain) percent decrease in the price per unit. d. Determine the sensitivity of the projec's NAV Ioan) 8 percent increase in the variable cost per unit e. Determine the sensitivity of the project's NPV to ain) 8 percent increase in the annual fixed operating costs 1. Use scenario analysis to evaluate the project's NPV under worst and best-case scenarios for the project's value drivers. The values for the expected or base-case along with the worst- and a. The NPV for the base case will be $ (Round to the nearest dollar) 1 of 2 (0 complete) point 13.3) (Comprehensive risk analysis) Blinkeria is considering introducing a new line of hand scanners that ca These pannor. On arnasted to call foran ANN Analvete performing the a eriod off Jology. In addit ing depre Data Table ed to buy a cor e value, In additional $3 ation con $9,200,000 5 years 's NPV to 's NPV to 's NPV to 's NPV to broject's Initial cost of the machine Expected life Salvage value of the machine Working capital requirement Depreciation method Depreciation expense Cash fixed costs-excluding depreciation Variable costs per unit Required rate of return or cost of capital Tax rate xpected or bas 7. (Rour $300,000 straight line $1,840,000 per year $1,060,000 per year $19 9% 34% Print Done nd then Chor UNOKATSWET. Clear All P13-7 (similar to) Question Help then download it into a personal computer. These scanners are expected to sell for an average price of $101 each and the company analysts performing the analysis expect that the firm canse 102.000 units per year at this price for a period of five years, wer which time they expect demand for the product to end a rest of new technology. In addition, variable costs are expected to be $19 per unit and fixed costs, not including depreciation are forecast to be $1 050 000 per year. To manufacture this product. Blinkeria will need to buy a computerized production machine for $9.2 million that has no residual or salvage value and will have an expected of five years. In addition, the firm expects will have to invest an additional $300,000 in working capital to support the new business. Other pertinent information concerning the business venture is provided here: a. Calculate the project's NPV. b. Determine the sensitivity of the project's NPV to ain) 8 percent decrease in the number of units sold c. Determine the sensitivity of the project's NPV to ain) 8 percent decrease in the price per unit. d. Determine the sensitivity of the project's NPV to ain) 8 percent increase in the variable cost per unit e. Determine the sensitivity of the project's NPV to ain) 8 percent increase in the annual fixed operating costs. 1. Use scenario analysis to evaluate the project's NPV under worst and best-case scenarios for the project's value drivers. The values for the expected or base-case along with the worstand best-case scenarios are listed here: Data Table a. The NPV for the base-case will be $ (Round to the new Best Case Unit sales Price per unit Variable cost per unit Cash fixed costs per year Depreciation expense Expected or Base Case 102,000 $101 $(19) ${1.000.000) ${1.840,000) Worst Case 70,380 S88 321.28) ${1.262.600) $(1.840,000) $119.18 ${1729) $(932,800) $11.840,000) Enter your answer in the answer box and then click Check