Question: We are evaluating a proiect that costs 5 7 8 8 , 4 9 0 , has a nineyear life, and has no salvage value.

We are evaluating a proiect that costs 5788,490, has a nineyear life, and has no salvage value. Rypume that depreciation is atraightline to aero over the ile of the project. Sales are projected at 75,000 units per yeac. Price per unit is 552, varlable cont per urit is $36.
a-1. Culculate the accounting break even poirt.
Nole: Do net round intermediate calculatiens and isund your antwer to the nearest whole number, e.g.32.
A-2 What is the degree of osersting loverage at the accounting besak-even point?
Noter De net round intermediate calculations and round ybur aniwer to 3 decimal placel, e.9,32.261.
b- C. Calculate the base-case cash flow and NPV,
Note: Do not round intermediate calculations. Apund your cash fow andwer to the nearent mhole mumbec, 4.9,32, Round your NPY anvwer to 2 derlmal plseet, e.g.32.96.
b-2. What is the sensitivity of NPV/ to chasges in the quantity sold?
Nete: Do not rownd intermediate calculations and round ybur antwer to 2 decimal places, 4.8,32.96.
C. What is the sernit vity of OCF to changes in the vasiable cost Fgart?? the mearest whole number, e.9.32.
\table[[-f. Breah ives poed,32.356,ants],[2. DCL,,],[b-4. Canh foer],[NPY],[-2 ANPMAO,,],[4. a0cridit,5-49250,]]
We are evaluating a proiect that costs 5 7 8 8 ,

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