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Intro Your company has developed a new type of kitchen blender. The development has cost $780,000. To produce the blender, a new machine is

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Intro Your company has developed a new type of kitchen blender. The development has cost $780,000. To produce the blender, a new machine is required that will cost $1,600,000 to buy and install. This amount is to be linearly depreciated to zero over the life of the project and there is no salvage value. You expect to be able to sell the new blenders over a 5-year period. The selling price per unit is expected to be $80, variable costs are $55 per unit and fixed costs are $400,000 per year. You've collected the following estimates for unit sales and their respective probabilities: Base case Pessimistic Optimistic Unit sales per year (Q) 71,000 35,500 99,400 Probability 0.4 0.4 0.2 The required return is 16% and the tax rate is 34%. Part 1 What is the NPV in the base case? 0+ decimals Submit Part 2 What is the NPV in the pessimistic case? 10+ decimals Submit Part 3 What is the NPV in the optimistic case? 0+ decimals Submit BAttempt 1/5 for 8 pts. BAttempt 1/5 for 8 pts. BAttempt 1/5 for 8 pts. Part 4 What is the expected NPV? BAttempt 1/5 for 8 pts. 0+ decimals Submit

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