Use scenario analysis to evaluate the project's NPV under worst- and best-case scenarios for the project's value drivers. The values for the expected or base-case along with the worst- and best-case scenarios are listed here:

	Expected or Base Case		Worst Case		Best Case
Unit sales	101,000		68,680		133,320
Price per unit	$99		$91.08		$117.81
Variable cost per unit	$(18)		$(19.98)		$(16.38)
Cash fixed costs per year	$(1,050,000)		$(1,281,000)		$(924,000)
Depreciation expense	$(2,040,000)		$(2,040,000)		$(2,040,000)

Homework: Chapter 13 Homework Save Score: 0.86 of 6 pts 1 of 2 (2 complete HW Score: 42.86%, 3.86 of 9 pts P13-7 (similar to) Question Help Related to Checkpoint 13.2 and Checkpoint 13.8) (Comprehensive risk analysis) Blinker is considering introducing a new line of hand scanners that can be used to copy material and then download into a personal computer. These scaners are expected to sell for an average price of $99 each and the company analysts performing the analysis expect that them can 01,000 per year at this price for a period of five years after which they expect demand for the product to end as a rest of technology hason, variable costs are expected to be $10 per unit and costs, not including depreciation are forecast to be $1.050,000 per year. To manufacture this product, Birker will need to buy a computer production machine for $102 million that has to residual or salvage value and will have an expected Ifo offve years. In addition, the firm expect it will have to invest an additional $305,000 in working capital to support the new business. Other pertinent information concerning the business venture is provided here 1 Data Table d a. Calculate the project's NPV Determine the sensitivity of the project's NPV to 12 percent cread 6. Determine the sensitivity of the proje NPV to 12 percent decreas etermine the sensitivity of the project's NPV to al 12 percent increase .. Determine the sensitivity of the project's NPV to als) 12 percent increase Use scenar i stove the project's NPV under wont and be $10.200.000 powth the worst and best-case series are here: m a. The NPV for the base will be $8.943.975. Round to the nearest $505.000 The projects NPV to c. The project's NPV to 12 percent decrease in the number of units of 12 percent decrease in the price per unit will be Inital cost of the machine Expected to Salvape value of the machine Working optarevirement Depreciation method Depreciation expense Cash fed con c luding depreciation Variable costs per unit Required rate of return or cost of capital Taxate $2.040.000 per your $1050.000 per year 1045 Done Enter your answer in the answer box and then click Check A we. Clear A Check Arower