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(Related to Checkpoint 13.3) (Scenario analysis) Family Securty 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 Securty 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 child it he or she was ever lost or abducted. The estimates, that might be off by 8 percent (either above or below). associabed with this new product are shown here: Since this is a now product line, you are not confident in your estimatos and would liks to know how well you Will fare If your estimates on the items listed above are 8 percent higher or 8 porcent lower than expected. Assume that this new product line will require an initial outlay of $1.12 milion, with no working capital invostment, and will last for 10 yoars, being depreciated down to zero using straight-line depreciation. In addition. the firm's tequired rate of return or cost of caphal is 10.2 porcent, and the firm's marginal tax rate is 34 percent. Calculate the projocts NPV under the "best-case scenario" (that is, use the high estimales - unit price 8 percont above expected, variable costs 8 purcont less than expected, freed oosts 8 percent less than expected, and expected sales 8 percent more than expected). Caloulate the projuct's NPV under the "Worst-case scenario." The NPV for the best-case scenario wili be? (Round to the narest dollac.) Checkpoint 13.3) (Scenario analysis) Famly Security is considering introducing tiny Gps tracker then allow for the tracking of that child it he or she was fver lost or abouctod. The eatimates, that mi Data table

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