Question: can anybody ans this question We are evaluating a project that costs $864,000, has an eightyear life, and has no salvage value. Assume that depreciation

can anybody ans this question
can anybody ans this question We are evaluating a project that costs
$864,000, has an eightyear life, and has no salvage value. Assume that

We are evaluating a project that costs $864,000, has an eightyear life, and has no salvage value. Assume that depreciation is straight- line to zero over the life of the project Sales are projected at 71,000 units per year. Price per unit is $49, variable cost per unit is $33. and fixed costs are $765,000 per year. The tax rate is 35%, and we require a 10% return on this project 6-1. Calculate the accounting break-even point (Round the final answer to 2 decimal places.) Break even point 1-2. What is the degree of operating leverage at the accounting break-even point? (Round the final answer to 3 decimal places.) 54563 units DOL 8.083 b-1. Calculate the base-case cash flow and NPV (Round the final NPV answers to 2 decimal places. Omit $ sign in your response.) Cash flow ANPY 278950 55.48% 3 b-2. What is the sensitivity of NPV to changes in the sales figure? (Do not round Intermediate calculations. Round the final answer to 3 decimal places. Omit $ sign in your response.) ANPV AQ $ c. What is the sensitivity of OCF to changes in the variable cost figure? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.) AOCFIAVC $ -46150

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