Question: Old MathJax webview this is the problem Scenario Base Unit Sales 180 Variable Cost $ 19500 Fixed Costs $ 630000 NPV $ 725432.48 198 $
Old MathJax webview


this is the problem
Scenario Base Unit Sales 180 Variable Cost $ 19500 Fixed Costs $ 630000 NPV $ 725432.48 198 $ 1985218.68 Best $ $ 17550 567000 $ 21450 162 $ 693000 -395759.47 $ Worst b. Evaluate the sensitivity of your base-case NPV to changes in fixed costs. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 3 decimal places. Omit $ sign in your response.) ANPV/AFC $ -1.974 c. What is the cash break-even level of output for this project (ignoring taxes)? (Round the final answers to the nearest whole unit.) Cash break-even 60 units d-1. What is the accounting break-even level of output for this project? (Round the final answers to the nearest whole unit.) Accounting break-even 117 units d-2. What is the degree of operating leverage at the accounting break-even point? (Round the final answer to 4 decimal places.) Degree of operating leverage 20501 3 You are considering a new product launch. The project will cost $2,400,000, have a 4-year life, and have no salvage value; depreciation is straight-line to 0. Sales are projected at 180 units per year; price per unit will be $30,000; variable cost per unit will be $19,500; and fixed costs will be $630,000 per year. The required return on the project is 12%, and the relevant tax rate is 35%. a. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within +10%. What are the upper and lower bounds for these projections? What is the base-case NPV? What are the best-case and worst-case scenarios? (Negative answers should be indicated by a
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