Question: Question 14 While evaluating a project that costs $2.58 million having 6 years life has no salvage value. Estimated sales at $3150000 per year, price

 Question 14 While evaluating a project that costs $2.58 million having
6 years life has no salvage value. Estimated sales at $3150000 per

Question 14 While evaluating a project that costs $2.58 million having 6 years life has no salvage value. Estimated sales at $3150000 per year, price fixed cost $37500 per year. The tax rate and the required rate of return is 18% and 11% respectively. Show the steps of Company 1. Find the base cash flow and base NPV ( 3 points) 2. What is the sensitivity of NPV to change is sales figure ( 2 points) 3. Find the NPV change for a 400 unit decrease of projected sales (2 points) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac), I o s Paragraph V Arial 10pt jil Question 14 7 points While evaluating a project that costs $2.58 million having 8 years life has no salvage value. Estimated sales at $3150000 per year, price per units 455 vare con 1255 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 (3 points) 2. What is the sensitivity of NPV to change is sales figure ( 2 points) 3. Find the NPV change for a 400 unit decrease of projected sales ( 2 points) the toolbar, press ALT F10 (PC) or ALT FN+F10 (Mac). 3 I y s Paragraph Arial 10pt E I ..

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