uff Wheels has forecast the demand and the cost 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.

Development cost $$1,500,000$

Estimated development time $9$ months

Pilot testing $$200,000$

Ramp$-$up cost $$400,000$

Marketing and support cost $$150,000$ per year

Sales and production volume $60,000$ per year

Unit production cost $$100$

Unit price $$230$

Interest rate $8\%$Assume all cash flows occur at the end of each period.

What are the yearly cash flows and their present value $($discounted at $8$ percent$)$ of this project? What is the net present value?

Note: 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.

What is the impact on NPV for the Kiddy Dozer if the actual sales are $50,000$ per year? $70,000$ per year?

Note: 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.

Based on the original sales level of $60,000,$ what is the effect on NPV caused by changing the discount rate to $9\%,10\%,$ or $11\%?$

Note: 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.