Related to Checkpoint 13.2 and Checkpoint 13.3) Comprehensive risk analysis) Blinkeriais considering introducing a new...

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Related to Checkpoint 13.2 and Checkpoint 13.3) Comprehensive risk analysis) Blinkeriais considering introducing a new line of hand camera can be used to copy material and then download into a personal computer. These armers are expected to it for an average price of $101 each and the company analysts performing the analysis expect that the firm can sel 105,000 units per year at this price for a period of five years, after which time they expect demand for the product to and as a result of new technology. In addition, variable costs are expected to be $21 per unit and fixed costs, not including depreciation, are forecast to be $1,000,000 per year. To maracture this product Blinkeria will need to buy a computed production machine for $9.5 million that has no residual or salvage value and will have an spected life of five years. In addition, their expects it will have to invest and $301000 in working capital to support the new business Other pertinent information concerning the business vertures provided here a Calculate the project's NPV. b. Determine the sensitivity of the projects NPV an) 12 percent decrease in the number of units sold c. Determine the sensitivity of the project's NPV ) 12 percent decrease in the price per unit d. Determine the envy of the project's NPV ) 12 percent in a cost per un e. Determine the entity of the projects NPV ) 12 percent increase in the l ed operating costs 1. 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 The NPV for the use case will be . Round to the nearest doar i Data Table $9,500,000 5 years $0 or base-ca Initial cost of the machine Expected life Salvage value of the machine Working capital requirement Depreciation method Depreciation expense Cash fixed costs-excluding depreciation Variable costs per unit Required rate of return or cost of capital Tax rate $301,000 straight line $1,900,000 per year $1,000,000 per year $21 10.4% 34% Print Done

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