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(Related to Checkpoint 13.3) (Scenario analysis) Family Secunty is considering introducing tiny GPS trackers that can be inserted in the sole of a child's shoe,

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(Related to Checkpoint 13.3) (Scenario analysis) Family Secunty 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 chid in he or she was ever lost or abducted. The estimates, that might be of by 9 percent (either obove or below), associated with this new peoduct are shown here: is a new product line, you are not confident in your estimates and would like to know how woll you will fare if your estimates on the dems tsted above are 9 percent higher or 9 percent lower than expected. Assume that this new product lne will require an inibal outlay of $1,15 millon, with no working capical investment, and will last for 10 years, being depreciated down to zero using straight-line depreciation. In addition, the firm's required rase of retum or cost of capital is 10.4 percent, and the firm's marginal tax rate is 34 percent. Catculate the project's NPV inder the "best-case scenario" (that is, use the high estimatos - unit price 9 percent above expected, variable costs 9 percont less than expected, food costs 9 percent less than expected, and expected sah 9 percent more than expected). Calculate the projects NPV under the "worst-case scenanio" The NPV for the bester. Data table

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