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

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The Tuff Wheels was getting ready to start its development project for a new product to be added to its small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The following table contains the relevant information for this project. Tuff Wheels also has provided the project plan shown as follows. As can be seen in the project plan, the company thinks that the product life will be three years until a new product must be created. Assume all cash flows occur at the end of each period. Assume all cash flows occur at the end of each period. a. What is the net present value (discounted at 8% ) of this project? Consider all costs and expected revenues. (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any interinediate calculations. Round your answer to the nearest thousand.) b. What is the impact on NPV for the Kiddy Dozer if the actual sales ard 50,000 per year? 70,000 per year? (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermedlate calculations. Round your answer to the nearest thousand.) c. Based on the original sales level of 60.000, what is the effect on NPV coused by changing the discount rate to 95 , 108 , or 118 ? (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. b. What is the impact on NPV for the Kiddy Dozer if the actual sales are 50,000 per year? 70,000 per year? (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.) c. Based on the original sales level of 60,000 , what is the effect on NPY caused by changing the discount rate to 9%,10%, or 11% ? (Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermedlate calculations. Round your answer to the nearest thousand.)

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