4/17/23, 3:36 PM Assignment Print View 17. Award: 1.66 points You did not receive full credit for this question in a previous attempt Problem 3-10 (Algo) 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. Development cost 750,000 Estimated development time 9 months Pilot testing 200,000 Ramp-up cost A tA tA 400,000 Marketing and support cost 150,000 per year Sales and production volume 60,000 per year Unit production cost 100 EA EA Unit price 155 Interest rate 8 % 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. PROJECT SCHEDULE YEAR 1 YEAR 2 YEAR 3 YEAR 4 KIDDY DOZER Q1 Development Pilot Testing Ramp-up Marketing and Support Production and Sales Assume all cash flows occur at the end of each period. https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUz|1NiJ9.eyJIbnZpcm9ubWVudC16InByb2QiLCJpc3MiOiJlenQiLCJwcmludFVSTC16ImhodHBzOlwvXC9lenRvLm 10ZWR1Y2F... 1/34/17/23, 3:36 PM Assignment Print View 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 intermediate calculations. Round your answer to the nearest thousand.) Net present value 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.) NPV 50,000 NPV 70,000 c. 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%? (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.) NPV 9% NPV 10% NPV 11% rev: 09_11_2020_QC_CS-227775 https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUz|1NiJ9.eyJIbnZpcm9ubWVudC16InByb2QiLCJpc3MiOiJlenQiLCJwcmludFVSTC16ImhodHBzOlwvXC9lenRvLm 10ZWR1Y2F... 2/3