Question: Need help solving these questions We are evaluating a project that costs $837,790, has an eight-year life, and has no salvage value. Assume that depreciation
We are evaluating a project that costs $837,790, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 62,239 units per year. Price per unit is $36, variable cost per unit is $19, and fixed costs are $424,751 per year. The tax rate is 35%, and we require a return of 17% on this project. In percentage terms, what is the sensitivity of OCF to changes in the variable cost per unit projection? (Round answer to 2 decimal places. Do not round intermediate calculations) Question 6 We are evaluating a project that costs $680,403, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 45,496 units per year, Price per unit is $45, variable cost per unit is $26, and fixed costs are $525,466 per year. The tax rate is 30%, and we require a return of 21% on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 10 percent. What is the Best Case NPV? (Round answer to 2 decimal places. Do not round intermediate calculations)
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