Question: please answer each part. i will give thumbs up We are evaluating a project that costs $604,000 has an 8-year life, and has no salvage
please answer each part. i will give thumbs upWe are evaluating a project that costs $604,000 has an 8-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 55,000 units per year. Price per unit is $36. variable cost per unit is $17 and fixed costs are $685,000 per year. The tax rate is 21 percent and we require a return of 15 percent on this project. a. Calculate the accounting break-even point (Do not round intermediate calculations and round your answer to the nearest whole number, e.g.. 32.) b-1. Calculate the base-case cash flow and NPV. (Do not round intermediate calculations and round your NPV answer to 2 decimal places, e.g.. 32.16.) b-2. What is the sensitivity of NPV to changes in the sales figure? (Do not round intermediate calculations and round your answer to 3 decimal places. e.g., 32.161.) C. What is the sensitivity of OCF to changes in the variable cost figure? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g.. 32.) ces Units a Break-even point b-1 Cash flow INPV b 2.ANPVING eu AOCFIAVC
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