Question: We ace evaluating a project that costs $1,890.000, has a 6-year iffe, and has no salvage value. Assume that depreciation is straight-line to zero over

 We ace evaluating a project that costs $1,890.000, has a 6-year

We ace evaluating a project that costs $1,890.000, has a 6-year iffe, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 89.400 units per year. Price per unit is $38.37, variable cost per unit is $23.55, and fixed costs are $836,000 per yeat. The tax rate is 22 percent, and we require a return of 9 percent on this project. o. Caiculate the base-case operating cash flow and NPV. Note: Do not round intermediate caleulations and round your answers to 2 decimal ploces, e.9., 32.16. b. What is the sensitivity of NPV to changes in the sales figure? Note: Do not round intermediate calculotions and round your answer to 3 decimal places, e.9., 32.161. c. If there is a 500 -unit decrease in projected sales, how much would the NPV change? Note: A negotive answer should be indieated by o minus sign. Do not round intermediote calculotions and round your answer to 2 decimal ploces, e.9.3.32.16. d. What is the sensitivity of ocf to changes in the vartable cost figure? Note: A negative answer should be indiceted by a minus aign. Do not round intermediate calculations and round your answer to the nenrest whole number, 0.9432. 6. If there h o s1 deciesse in estimated variable costs, hiow much would the OCF change? Notes Do not round intermediote caleulations and round your answer to the nearest whole number, e.g. 32

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