(Related to Checkpoint 13.2 and Checkpoint 13.3) Comprehensive risk analysis) Blinker 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 sell for an average price of $104 each, and the company analysts performing the analysis expect that the firm can sell 104.000 unts per year at this price for a period of five years after which time they expect demand for the product to end as a result of new technology In addition, Variable costs are expected to be $10 per unit and we could not including depreciation are forecast to be $1.070,000 per you to manufacture this product, Binkeria will need to buy a computerized production machine for $9.8 million that has no residual or salvage value and will have an expected of five years. In addition, the firm expects it will have to invest an additional 307.000 in working capital to support the new business, Omer pertinent information concerning the business venture is provided here ! a. Calculate the project's NPV b. Determine p er twity of the projects NPV to an 10 percent decrease in the number of units sold c. Determine the sensity of the proces NPV to an 10 percent decrease in the price per un d. Determine the on ly of the project's NPV loan 10 percent increase in the variable cost per unit e. Determine the entity of the projects NPV to an 10 percent increase in the land operating 1. Use scenario alys to evaluate the project's NPV under worstand best-se scenarios for the proors value drivers. The oth Isted here: 0 Data Table e r has calong with the car 1 Data Table $9,000,000 5 years Worst Case Expected or Base Case 104.000 $104 Und es Price per unit Variable cost per un Cash fixed costs per year Depreciation expense Best Case 134,160 $125.84 511620) $(964,400) $1.900,000) $9360 S(1998) $(1,273,300) $(1.000.000) inal cost of the machine Expected the Salvage value of the machine Working capital requirement Depreciation method Depreciation expense Cash food costs excluding depreciation Variable costs per unit Required rate of return or cost of capital Tax rate $307.000 straight line $1,900.000 per year $1,070,000 per your (18) $(1.070,000) ${1.900,000) 9.15 34% (Related to Checkpoint 13.2 and Checkpoint 13.3) Comprehensive risk analysis) Banker 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 sell for an average price of $104 each, and the company analysts performing the analysis expect that the firm can of 104.000 units per year a s price for a period of five years after which time they expect demand for the product to end as a result of new technology ha variable costs are expected to be $10 per unt and red costs, not including deprecation are forecast to be 51.070.000 per year. To manufacture this product, Blinkera will need to buy a computerized production machine for $9.8mion that has no residual or salvage value and will have an expected Me of five years. In addition, the firm expects it will have to invest an additional $307,000 in working capital to wpport the new business Other pertinent information concerning the business venture is provided here: a. Calculate the project's NPV b. Determine the sensitivity of the projects NPV to ain) 10 percent decrease in the number of units sold G. Determine the sensitivity of the project's NPV bain 10 percent decrease in the priceperunt d. Determine the sensitivity of the projects NPV loan) 10 percent increase in the variable cost per unit e. Determine sotty of the projects NPV ain) 10 percent increase in the annual Red operating costs 1. Use scenario analysis to evaluate the project's NPV under worstand best-case scenarios for the project's value divers. The values for the expected or base-case along with the worstand listed here: a. The NPV for the base-case wilt Round to the nearest dollar) Enter your answer in the answer box and then click Check Answer 6 maig Check Air 1 of 2 (1 complete) core: 0 of 6 pts P13-7 (similar to) HW Score: 33.33%, 3 of 9 Question Help (Related to Checkpoint 13.2 and Checkpoint 13.3) (Comprehensive risk analysis) Blinkeriais 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 sell for an average price of $104 cach, and the company analysts performing the analysis expect that the firm can sell 104,000 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 result of new technology. In addition, variable costs are expected to be $18 per unit and fored costs, not including depreciation, are forecast to be $1.070,000 per year. To manufacture this product, Blinkeria will need to buy a computerized production machine for $9.8 milion 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 $307,000 in working capital to support the new business. Other pertinent information concerning the business venture is provided here: a. Calculate the project's NPV. b. Determine the sensitivity of the projects NPV to ain) 10 percent decrease in the number of units sold. c. Determine the sensitivity of the project's NPV to an) 10 percent decrease in the price per unit. d. Determine the sensitivity of the project's NPV lon) 10 percent increase in the variable cost per unit. e. Determine the sensitivity of the projects NPV to ain) 10 percent increase in the annual fixed operating costs. 1. Use scenario analysis to evaluate the project's NPV under worst and best-case scenarios for the project's valued Data Table Data Table $9,800,000 5 years Unit sales Price per unit Variable cost per unit Cash food costs per year Depreciation expense Expected or Base Case 104,000 $104 $(18) $(1.070,000) $1,960,000) Worst Case 73,840 $93.60 $(1998) $(1,273,300) $(1.900.000) Best Case 134,160 $125.84 $(16.20) S4 400) $(1.960,000) Initial cost of the machine Expected life Salvage value of the machine Working capital requirement Depreciation method Depreciation expense Cash fixed costsenduding depreciation Variable costs per unit Required rate of rotum or cost of capital $307.000 straight line $1,980,000 per year $1.070,000 per year $18 9.196 34% Print Done SO