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Parts A-F Please (Related to Checkpoint 13.2 and Checkpoint 13.3). (Comprehensive risk analysis) Blinkeria is considering introducing a new line of hand scanners that can
Parts A-F Please
(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 usod to copy material and then downloed it into a personal computer. These scanners are expocted to sell for an avorage price of $96 each, and the company analysts porforming the analysis expect that the firm can sell 104,000 units per year at this price for a penod of five years, atter which tme they expect demand for the proxduct to end as a result of new technology In addition, variable costs are expectod to be $19 per unit and fixed costs, not including depreciation, are forecast to be $1,080,000 per year. To manulacture this product, Binkeria will need to buy a computerized production machine for $106 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 $306,000 in working capital to support the new business. Other pertirent information concerning the busiress venlure is provided here. a. Calculate the projoct's NPV. b. Dotermine the sensitivity of the project's NPV to a(n) 11 percent decrease in the number of units sold c. Dotermine the sensitivity of the projocfs NPV to a(n) 11 percent docrease in the price per unit d. Determine the sensitivity of the projects NPV to a(n) 11 percent increase in the variable cost per unit e. Dotormine the sensitivity of the projects NPV to a(n) 11 percent increase in the annual fixed operating costs 1. Use sconario analysis to evaluate the propect's NPV under worst-and best case sconarios for the project's value drivers. The values for the expected or base-case along with the worst-and best-case scenaros are listed here Data table Data table Step by Step Solution
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