family security is considering introducing tiny gps trackers that can be inserted in the sole

Vista Previa Archivo Edicin Visualizacin Ir Herramientas Ventana Ayuda Captura de pantalla 2019-04-16 a la(s) 6.47.23 p. m. P13-6 (similar to) Question Help 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 if he or she was ever lost or abducted. The estimates, that might be off by 12 percent (either above or below), associated with this new product are shown here: EEB. 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 12 percent higher or 12 percent lower than expected. Assume that this new product line will require an initial outlay of $1.07 million, with no working capital investment, and will last for 10 years, being depreciated down to zero using straight-line depreciation. In addition, the firms required rate of retum or cost of capital is 9.6 percent, and the fim'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 12 percent above expected, variable costs 12 percent less than expected, fixed costs 12 percent less than expected, and expected sales 12 percent more than expected). Calculate the project's NPV under the worst-case scenano. The NPV for the best-case scenario will be $ (Round to the nearest dollar.) 1 Data Table Unit price: Variable costs: Fixed costs: Expected sales: $127 $80 $247,000 per year 10,400 per year Print Done