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(Related to Cheokpolat 13.3) (Scenarlo analysis) Famly Socurty is considering hitroducing tiny GPS trackers that can be insorted in the sole of a child's shice,

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(Related to Cheokpolat 13.3) (Scenarlo analysis) Famly Socurty is considering hitroducing tiny GPS trackers that can be insorted in the sole of a child's shice, which would then alow for the fracking of that child if he or she was ever lost or abducted. The estrmates, that might be of by 8 percent (ether above or below), associated with this new oroduct are shown here: ia a new produet line, you are not confident in your estimates and would like to know how well you will fare if your estimatos on the ziems liatod abowa are 8 percert higher or 8 percent lower than expecled. Assume that this new product line will require an intial cultay of $1.06 milion, with no working capial investment, and will last for to yeans, being depreciated down to zero uking straight-ine depreciation. In addition, the firn's required rate of retum or cost of copial is 9.6 percent, and the firmis marginal tax rate is 34 percent. Calculate the project's NPY under the "best-cise sconario" (that is, use the high escmates-unit price 8 percent above expected, variable cosis B percent lese than expected, fixnd costs 8 percont less than expectec, and expected sales 5 percent more than expected). Calculate the projecra NPV under the worst-case scenario. The NPV for the best-case scenario will be s (Round to the bearest dollac) Data table

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