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wrost and best case scenario please (Related to Checkpoint 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be inserted in
wrost and best case scenario please
(Related to Checkpoint 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that can be inserted in the sole of a child's shoe which would then allow for the tracking of that child it he or she was ever lost or abducted. The estimates, that might be off by 11 percent (other above or bolow). associated with this new product are shown here ! Since this is a new product line, you are not confident in your estimates and would like to know how well you will fare if your estimates on the items listed above are 11 porcent higher or 11 percent lower than expected Assume that this new product line will require an initial outlay of $1.09 million, with no working capital investment, and will last for 10 years, being depreciated down to zero using straight-line depreciation In addition, the firm's required rate of return or cost of capital is 9.6 percent, and the firm's marginal tax rate is 34 percent Calculate the project's NPV under the best case scenario (that is use the high estimates-unit price 11 percent above expected variable costs 11 percent less than expected, fixed costs 11 percent less than expected and expected sales 11 percent more than expected) Calculate the project's NPV under the "worst-case scenario - X Data table Unit price: $122 Variable costs: $73 Fixed costs: $249,000 per year Expected sales: 10,600 per year (Click on the icon in order to copy its contents into a spreadsheet) Print Done Step by Step Solution
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