Question: please answer the question with steps while evaluating a project that costs $2.58 million having 6 years life has no salvage value. Estimated sales at

please answer the question with steps
please answer the question with steps while evaluating a project that costs
while evaluating a project that costs $2.58 million having 6 years life has no salvage value. Estimated sales at $3150000 per year, price per unit is 45$, variable cost per unit is 12.5$ and fixed cost $37500 per year. The tax rate and the required rate of return is 18% and 11% respectively. Show the steps of computation.
1. Find the base cash flow and base NPV
2 What is the sensitivity of NPV to change is sales figure
3. Find the NPV change for a 400 unit decrease of projected sales
$2.58 million having 6 years life has no salvage value. Estimated sales

4 More to another question will save the respon. Question 14 ile evaluating a project that conts $2.58 million tuving 6 years life has no salvage valos. Estimated sales at 53150000 per year.priceperunik 455, vecant per und 12 sent by 537500 put yet. Time tax rate and the required rate of return is 18% and 11% respectively Show the steps of computation 1 Find the base cash flow and hase NPV (3 points) 2. What is the sensitivity of NPV to change is sales figure ( 2 points) Find the NPV change for a 100 unit decrease of projected sales (2 points) For the bar, press ALT+F10 (PC) O ALTHEN+F10 (Mac) B I us Paragraph Anal 10pt IXO O Q II III were 2.5 milion having 6 years Me has to salvage value Estimated sales at 3150000 per your pet with 55. eco per una The the bed rate of burn 10% and 11% respectively Show the steps of computation NPV ( 3 points) hange is sure 2 points) the NIV change decrease of projected sales (2 points) SALT 10 PALTEN 10 Mac

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!