Homework: Chapter 13 Homework Score: 0 of 6 pts 1 of 2 (0 complete) HW Score: 0%, 0 of 9 pls P13-7 (similar to) E Question Help period of five years after which time they expect demand for the product to end as a result of new technology. In addition, variable costs are expected to be $22 per unit and fixed costs, not including depreciation, are forecast to be $1,020,000 per year. To manufacture this product , Blinkeria will need to buy a computerized production machine for $10.1 million that has no residual or salvage value, and will have an expected life of five years. In addition, the firm expects it will have to invest an additional $302.000 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 a(n) 11 percent decrease in the number of units sold c. Determine the sensitivity of the project's NPV to a[n) 11 percent decrease in the price per unit d. Determine the sensitivity of the project's NPV 10 an) 11 percent increase in the variable cost per unit e. Determine the sensitivity of the project's NPV to an) 11 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 best-case scenarios are listed here a. The NPV for the base-case will be $ (Round to the nearest dollar) Enter your answer in the answer box and then click Check Answer ? 6 parts remaining CE 3:23 PM Type here to search LI 11/25/2020 apter 13 Homework Sa Score: 0 of 6 pts 1 of 2 (0 complete) > HW Score: 0%, 0 of 9 P13-7 (similar to) Question Help period of five years after which time they expect demand for the product to end as a result of new technology. In addition, variable costs are expected to be $22 per unit and fixed costs, not including depreciation are forecast to be $1,020,000 per year To manufacture this Is no residual or salvage value, and will have an expected life of five years. In addition the firm expects it will have to in Data Table - Xormation concerning the business venture is provided here mm a. Calculal Data Table 's NPV b. Determine the sensitivity of the project's NPV to a(n) 11 pl c. Determine the sensitivity of the project's NPV to a(n) 11 p d. Determine the sensitivity of the project's NPV to a[n) 11 pl e. Determine the sensitivity of the project's NPV to a[n) 11 p f. Use scenario analysis to evaluate the project's NPV under are listed here ! base-case along with the worst- and best-case scenarios 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 510 100 000 5 5 years $0 5302,000 straight line $2.020.000 per year $1 020 000 per year $22 9.3% 34% a. The NPV for the base-case will be 5 (Round to the ne Print Done Enter your answer in the answer box and then click Chec parts Score: 0 of 6 pts 1 of 2 (0 complete) HW Score: 0% 0 of 9 pts 13-7 (similar to) period of five years, after which time they expect demand for are forecast to be $1,020,000 per year. To manufacture this life of five years. In addition, the firm expects it will have to in Data Table Question Help 0 here: 2 Eosts, not including depreciation value and will have an expected business venture is provided a. Calculate the project's NPV. b. Determine the sensitivity of the project's NPV to an) 11 pe c. Determine the sensitivity of the project's NPV to a(n) 11 p d. Determine the sensitivity of the project's NPV to a(n) 11 p e. Determine the sensitivity of the project's NPV to a[n) 11 p f. Use scenario analysis to evaluate the project's NPV under are listed here Unit sales Price per unit Variable cost per unit Cash fixed costs per year Depreciation expense Expected or Base Case 110.000 599 $(22) $(1,020,000) $(2.020,000) Worst Case 75,900 $90 09 $(23.76) $(1.234.200) 5(2.020.000 Best Case 144 100 $119.79 S(1980) $(918,000) 5(2.020.000) e worst and best-case scenarios a. The NPV for the Data Table ill be s Print Done (Round to the ne Enter your answer in the answer box and then click Check