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(Related to Checkpoint 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be insarted in the sole of a chisits shoe,

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(Related to Checkpoint 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be insarted in the sole of a chisits shoe, which would then allow for the tracking of that child it he or she was ever lost or abducted. The estimates, that might be off by 11 percent (either abovo or below), associated with this new product are shown here: Ifti. Since this is a new product line, you are not confident in your estimates and would like to know how well you will tare if your estimates on the soms listed above are 11 percent higher or 11 percent lower than expected. Assume that this new product line will require an initial outlay of $1.03 milion, with no working capital investment, and will last for 10 years, being depreciated down to zoro using straight-line depreciation. In addition, the firm's required rate of retum or cost of captal is 10.4 percent, and the firm's marginal tax rate is 34 percont. Calculate the project's NPV under the "best-case scenario" (that is, use the high estimates-unit price 11 percent above expected, variable costs 11 percent less than expected, fixed costs 11 percent iess than expected, and axpectid sales 11 percent more than expected). Calculate the projects NPV under the "worst-case scenaric." The NPV for the best-case scenario will bes (Round to the neard Data table

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