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The Tuff Wheels was getting ready to start its development project for a new product be added to their small motorized vehicle line for children.

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The Tuff Wheels was getting ready to start its development project for a new product be added to their small motorized vehicle line for children. The new product is called th Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and blade. Tuff Wheels has forecasted the demand and the cost to develop and produce th new Kiddy Dozer. The table below contains the relevant information for this project. Tuff Wheels also has provided the project plan shown below. As can be seen in th project plan, the company thinks that the product life will be three years until a ne product must be created. a. What is the net present value (discounted at 8% ) of this project? Consider all costs an expected revenues. (Enter your answer in thousands of dollars. Round your answe to the nearest thousand.) b. What is the impact on NPV for the Kiddy Dozer if the actual sales are 50,000 pt year? $70,000 per year? (Enter your answer in thousands of dollars. Round you answer to the nearest thousand.) c. What is the effect on NPV caused by changing the discount rate to 9%,10%, 11% ? (Enter your answer in thousands of dollars. Round your answer to the neare thousand.) The Tuff Wheels was getting ready to start its development project for a new product be added to their small motorized vehicle line for children. The new product is called th Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and blade. Tuff Wheels has forecasted the demand and the cost to develop and produce th new Kiddy Dozer. The table below contains the relevant information for this project. Tuff Wheels also has provided the project plan shown below. As can be seen in th project plan, the company thinks that the product life will be three years until a ne product must be created. a. What is the net present value (discounted at 8% ) of this project? Consider all costs an expected revenues. (Enter your answer in thousands of dollars. Round your answe to the nearest thousand.) b. What is the impact on NPV for the Kiddy Dozer if the actual sales are 50,000 pt year? $70,000 per year? (Enter your answer in thousands of dollars. Round you answer to the nearest thousand.) c. What is the effect on NPV caused by changing the discount rate to 9%,10%, 11% ? (Enter your answer in thousands of dollars. Round your answer to the neare thousand.)

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