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(Related to Checkpoint 13.8) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be inserted in the sole of a child's shon,

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(Related to Checkpoint 13.8) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be inserted in the sole of a child's shon, which would then allow for the tracking of that child if he or she was ever lost or abducted. The estimates, that might be off by percent (either above or below). associated with this new product are shown here: m Since this is a new product line, you are not confident in your estimates and would like to know how well you will fare if your estimates on the items listed above aro 9 percent higher or percent lower than expected. Assume that this new product line will require an initial outlay of S1.19 million, 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 capital is 10.1 percent, and the firm's marginal tax rate is 34 percent. Calculate the projecte NPV under the best case scenario" (that is, use the high estimates unit price 9 percent above expected, variable costs 9 percent than expected, fixed costs 9 percent less than expected, and expected sales 9 percent more than expected). Calculate the project's NPV under the worst cane sonario." The NPV for the best-cano scenario will be s (Round to the nearest dollar) Data Table Unit price: $123 Variable costs: $70 Fixed cost: $255,000 per year Expected sales: 11,000 per year in order to copy content info prodahoo. (Clok on the icon

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