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Question 1, P13-6 (simil... Part 1 of 2 HW Score: 75%, 60 of 80 points O Points: 0 of 10 ced to Checkpoint 13.3) (Scenario

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Question 1, P13-6 (simil... Part 1 of 2 HW Score: 75%, 60 of 80 points O Points: 0 of 10 ced to Checkpoint 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers t ed in the sole of a child's shoe, which would then allow for the tracking of that child if he or she was ever losto ted. The estimates, that might be off by 9 percent (either above or below), associated with this new product a Data table your ct line clated percer e the nt les sl-case pi ar ce th Unit price: $120 Variable costs: $72 Fixed costs: $253,000 per year Expected sales: 10,300 per year (Click on the icon in order to copy its contents into a spreadsheet.) NPV id Print Done > Question 1, P13-6 (simil... HW Score: 75%, 60 of 80 points Save Part 1 of 2 O Points: 0 of 10 (Related to Checkpoint 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be inserted in the sole of a child's shoe, which would then allow for the tracking of that child if he or she was ever lost or abducted. The estimates, that might be off by 9 percent (either above or below), associated with this new product are shown here Since this is a new product line, you are not confident in your estimates and would like to know how well you will fare if your estimates on the items listed above are 9 percent higher or 9 percent lower than expected. Assume that this new product line will require an initial outlay of S1 16 million, with no working capital investment, and will last for 10 years being depreciated down to zero using straight-line depreciation. In addition, the firm's required rate of return or cost of capital is 10.4 percent, and the firm's marginal tax rate is 34 percent Calculate the project's NPV under the best-case scenario" (that is, use the high estimates-unit price 9 percent above expected variable costs 9 percent less than expected, fixed costs 9 percent less than expected, and expected sales 9 percent more than expected). Calculate the project's NPV under the "worst-case scenario BER

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