Question: Sensitivity Analysis and break even ( L01,3) we are evaluating a project that costs $924,000 has an eight-year life and has no salvage value. Assume
Sensitivity Analysis and break even ( L01,3) we are evaluating a project that costs $924,000 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 $75,000 units per year. Price per unit is $46, variable cost per unit is $31 and fixed costs are $825,000 per year. The tax rate is 35 percent, and we require a 15 percent return on this project.
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