Homework: Chapter 13 Homework Score: 0 of 6 pts 1 of 2 (0 complete) HW Score: 0%, 0 of 9 P13-7 (similar to) Question Help (Related to Checkpoint 13.2 and Checkpoint 13.3) (Comprehensive risk analysis) Blinkeria is 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 so for an average price of $103 each, and the company analysts performing the analysis expect that the firm can sell 100 000 units per year at this price for a period of five years, after which time they expect demand for the product to end as a res of new technology. In addition, variable costs are expected to be S21 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 $10 4 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 S303,000 in werking capdal to support the new business other pertinent information concerning the business venture is provided here. I a. Calculate the project's NPV b. Dolomine the sensitivity of the project's NPV 10 a(n) 9 percent decrease in the number of units sold c. Determine the sensitivity of the project's NPV to a[n) 9 percent decrease in the price per unit d. Determine the sensitivity of the project's NPV to any percent increase in the variable cost per unit e. Determine the sensitivity of the project's NPV to an) 9 percent increase in the annual fixed operating costs f. 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 i Data Table - X Unit sales Price per unit Vanable cost per unit Cash foxed costs per year Depreciation expense Expected or Base Case 100,000 $103 $121) $(1 050 000) $12,080 000) Worst Case 68 000 $94.76 $422 89) $(1.281.000) 5:2 080 000) Best Case 132.000 $125.66 $119 11) $(924.000) $(2 050 000) Print Done Enter your answer in the answer box and then click Check Answer 2 6 parts remaining b Clear All CHEKAWE Type here to search -o 12:32 PM 11/27/2020 SAMSUNG FY F4 FS F6 FB F9 F7 F10 F12 F11 F2 - F3 0. Fr. Lock -- Insert PC Delete vor De Ed + Hun @ 2 $ 4 96 5 A 6 & 7 00% ) O - Back 1 3 9 7 wZER TY I O P pts 1 of 2 (1 complete) nilar to) neckpoint 13.2 and Checkpoint 13.3) (Comprehensive risk analysis) Blinkera is considering introducing a new line of hand scanners that can be used to copy material and then download it into il for an average price of $103 each, and the company analysts performing the analysis expect that the firm can sell 100.000 units per year at this price for a period of five years, after which time they ogy In addition, variable costs are expected to be $21 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 at 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 $303,000 in working capital to support the now busines ure is provided here : he project's NPV Data Table - X the sensitivity of the project's NPV to a[n) 9 percent decrease the sensitivity of the project's NPV to a(n) 9 percent decrease i the sensitivity of the project's NPV to an) 9 percent increase in the sensitivity of the projec's NPV to a(n) 9 percent increase Initial cost of the machine $10,400 000 e ano analysis to evaluate the project's NPV under worst- and best Expected life 5 years g with the worst- and best-case scenarios a Salvage value of the machine $0 Working capital requirement $303,000 for the base-case will be $ (Round to the nearest dollar) Depreciation method straight line Depreciation expense $2.080,000 per year Cash fixed costs excluding depreciation $1 050,000 per year Variable costs per unit $21 Required rate of return or cost of capital 9% Tax rate 34% Print Done answer in the answer box and then click Check Answer. Clear All ning Type here to search