(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 to copy material and then download it into a personal computer. These scanners are expected to sell for an average price of $102 each, and the company analy performing the analysis expect that the firm can sell 102,000 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 $21 per unit and fixed costs, not including depreciation, are forecast $1,050,000 per year. To manufacture this product, Blinkeria will need to buy a computerized production machine for $9 million that has no residual or salvage va 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 busine Other pertinent information concerning the business venture is provided here: B a. Calculate the project's NPV. b. Determine the sensitivity of the project's NPV to a[n) 11 percent decrease in the number of units sold. c. Determine the sensitivity of the project's NPV to a[n) 11 percent decrease in the price per unit. d. Determine the sensitivity of the project's NPV to an) 11 percent increase in the variable cost per unit. e. Determine the sensitivity of the project's NPV to a[n) 11 percent increase in the annual fixed operating costs leo scenarin analvele to evaluate the rolete NRW unter worstand hact.cace cronarine for the noise salto delivere Tha wahee for the expected or hace a. The NPV for the base-case will be $ 11,461,108" (Round to the nearest dollar.) b. The project's NPV to a[n) 11 percent decrease in the number of units sold will be $ (Round to the nearest dollar.) i . Data Table X - Initial cost of the machine Expected life Salvage value of the machine Working capital requirement Depreciation method Depreciation expense Cash fixed costs-excluding depreciation Variable costs per unit Required rate of return or cost of capital Tax rate $9,000,000 5 years $0 $306,000 straight line $1,800,000 per year $1,050,000 per year $21 9.6% 34% Print Done