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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 used to

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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 used to copy thaterial and then downiload in into a personat computer. These scanners are expected to sell for an average price of 596 each, and the company analysts performing the analysis oxpect that the firm can sell 100.000 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 fechnology In addition, variable costs are expected to be $19 per unit and foxed costs, not including depreciation, are forecast to be $1,080,000 per year. 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 life of five years In addition, the firm expects it will have to invest an additional $300,000 in working capital to support the new business. Other pertinent information concerning the business venture is provided here: a. Calculate the projects NPV b. Determine the sensitivity of the profects NPV to a(n) 10 percent decrease in the number of unis sold c. Determine the sensitivity of the projecrs NPV to a(n) 10 percent dectease in the peice per unit d. Determine the sensilivily of the projects NPV to a(n) 10 percent increase in the variable cost per unit e. Determine the sensitvity of the projects NPV to a(n) 10 percent herease in the annual fixed operating costs a. The NPV for the base-case wat bes (5

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