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Need Assistance on this question Problem 3-10 (Algo) The Tuff Wheels was getting ready to start its development project for a new product to be
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Problem 3-10 (Algo) The Tuff Wheels was getting ready to start its development project for a new product to be added to its small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The following table contains the relevant information for this project. Development coat $1,050,000 Estimated development time 9 months Pilot testing 200.900 Ramp-up coat 400,090 Marketing and support cost 150,000 per year Salon and production volume 60,000 per year Unit production cost 10 0 Unit price 185 Interest rate Tuff Wheels also has provided the project plan shown as follows. As can be seen in the project plan, the company thinks that the product life will be three years until a new product must be created. Priot Testing Mubaking and Jupport Assume all cash flows occur at the end of each period. a. What Is the net present value (discounted at B ) of this project? Consider all costs and expected revenues. (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.) MacBook ProHelp Assume all cash flows occur at the end of each period. a. What is the net present value (discounted at 8%) of this project? Consider all costs and expected revenues. (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.) Net present value b. What is the impact on NPV for the Kiddy Dozer if the actual sales are 50,000 per year? 70,000 per year? (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.} NPV 50,000 NPV 70,000 c. Based on the original sales level of 60,000, what is the effect on NPV caused by changing the discount rate to 9%, 10%, or 11967 (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.) 16 b. What Is the impact on NPV for the Kiddy Dozer if the actual sales are 50,000 per year? 70,000 per year? [Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.} 1.66 points NPV 50,000 Flock NPV 70,000 Print e. Based on the original sales level of 60,000, what is the effect on NPV caused by changing the discount rate to 9%, 10%, or 1167 (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.) NPV 015 INPV 10% NPV 11% Mc MacBook ProStep by Step Solution
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