Question: We are evaluating a project that costs $ 8 4 5 , 0 0 0 , has an eight - year life, and has no
We are evaluating a project that costs $ has an
eightyear life, and has no salvage value. Assume that depreciation
is straightline to zero over the life of the project. Sales are
projected at units per year. Price per unit is $ variable
cost per unit is $ and fixed costs are $ per year. The
tax rate is percent, and we require a return of percent on
this project.a Calculate the accounting breakeven point. Do not round
intermediate calculations and round your answer to the nearest
whole number, ega What is the degree of operating leverage at the accounting
breakeven point? Do not round intermediate calculations and round
your answer to decimal places, egb Calculate the basecase cash flow and NPVDo not round
intermediate calculations. Round your cash flow answer to the
nearest whole number, eg Round your NPV answer to decimal
places, egb What is the sensitivity of NPV to changes in the quantity
sold? Do not round intermediate calculations and round your answer
to decimal places, egc What is the sensitivity of OCF to changes in the variable
cost figure? A negative answer should be indicated by a minus
sign. Do not round intermediate calculations.
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