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.

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

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

c$.$ What is the effect caused by changing the discount rate to $9,10,$ or $11$ percent? Assume $60,000$ unit sales per year.