Save Tk: Chapter 13 Homework Score: 0 of 6 pts 1 of 2 (0 complete) HW Score: 0%, 0 of 9 p P13-7 (similar to) Question Help Related to Checkpoint 13.2 and Checkpoint 13.3) (Comprehensive risk analysis) Blinkeria is considering introducing a new line of hand scanners that can be used to copy material and then download it into a personal computer. These scanners are expected to set for an average price of 596 each, and the company analysts performing the analysis expect that the firm can sell 109.000 units per year at this price for a period of five years after which time they expect demand for the product to end as a result of new technology in addition, variable costs are expected to be 522 per unit and fixed costs, not including depreciation are forecast to be $1,060,000 per year. To manufacture this product. Blinkerta will need to buy a computerized production machine for $10.6 million that has no residual or salvage value and will have an expected life of five years. In addition, the firm expects it will have to invest an additional $305.000 in working capital to support the new business Other pertinent information concerning the business venture is provided here a. Calculate the project's NPV b. Determine the sensitivity of the project's NPV to ain) 8 percent decrease in the number of units sold c. Determine the sensitivity of the project NPV to an 8 percent decrease in the price per unit d. Determine the sensitivity of the projects NPV to an 8 percent increase in the variable cost per unit e. Determine the sensitivity of the project's NPV to an 8 percent increase in the annual fixed operating costs 1. Use scenario analysis to evaluate the project's NPV under worst- and best-case scenarios for the project's value drivers. The values for the expected or base-case along with the we and heat rannat har a. The NPV for the base-cate will be $(Round to the nearest dolor Enter yourse in the box and then clickCheck Anuwe 02 Darts U O manu be $22 machir workin i Data Table x years. enture i Et's NE t's NF t's NF t's NE proje There he expe Initial cost of the machine Expected life Salvage value of the machine Working capital requirement Depreciation method Depreciation expense Cash fixed costsexcluding depreciation Variable costs per unit Required rate of return or cost of capital Tax rate $10,600,000 5 years $0 $305,000 straight line $2,120,000 per year $1,060,000 per year $22 10.1% 34% Print Done nd then click Check Answer Clear All