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You are considening a new product launch. The project will cost $800.000, hewe a 4 year Me, and have no saivage value, depreclation is straight-itie

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You are considening a new product launch. The project will cost $800.000, hewe a 4 year Me, and have no saivage value, depreclation is straight-itie to zero Sales are projected at 190 units per year, phite per unat will be $16,350, vailable cost per unit wit be $11200 and fixed costs will be $545,000 per year. The required return on the project is 10 petcent, and the relevant tink rote is 22 percent. Based on your experience. you think the unit sales, varioble cost, and food cost projectionts guen here are probably accurate to within 10 percent. a. What ate the best-case ond worst-case NPVs with these projections? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and cound your answers to 2 decimal places, e.g, 32.16. b. What is the base-case NPY? Note: Do not round intermediate calculations and round your anwwer to 2 decimel places, e.9-3, 32.16. c. What is the sensitivity of your base-case NPY to changers in foed costr? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round yout answei to 2 decimal places, e.9. 32.16

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