We are evaluating a project that costs $$874,800,$ has a nine$-$yebr life, and has no salvage value. Assume that depreciation is straightIne to zero over the life of the project. Sales are projected at $85,000$ units per yeac. Price per unit is $$55,$ variable cost per unit is $$39.$

a$-1.$ Calculate the accounting bresk$-$even point.

Note; Do not round intermedlate calculations and round your answor to the neareat mhole gumbec, eqs. $32.$

a$\mathrm{.}2$ What is the denree od operstiong lertrene ot the accourting break$-$oven pont?

Note; Do not round intermsediate calculations and round your answer to $3$ decimal places, e$\mathrm{.}9.32501.$ b$-1.$ Calculate the base$-$case cash flow and NPV$.$ Nour ansumer in $3$ derimal mlsce. $--*-$at$.$

b$-2.$ Whet is the senalivity of NPY to chonges in the quansty sold?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$9.32\mathrm{.}56.$

c$.$ What is the sensitivity of OCF to changes in the variable cost figure?

Note; A negative answer should be indicated by a minus slign. Do not round imtermediate calculations and round your antural Whe nescent whole numbers, e$0.32.$

Answer is complete but not entirely cerrect.

Consider a project with the following deta: Accounting break$-$even quantity $=10,300$ units cash break$-$even quartity $=9,500$ unitx ilife $=$ six years; floed costs $=$$$190,000$; variable costs $=$$$88$ per unit; required return $=10$ percent, lgnoring the effect of tavers, find the financlal break even auamtiv.

Noter Do not round intermediate calculations and round your answer to $2$ decimal places, e$9-2296.$

$\backslash$table$[[$Dreak$-$iven everity,$44,859\mathrm{.}90$

You are considering a new product launch. The project will cost $$2,100,000,$ have a four$-$year ille, and have no salvage valut, depreciation is stroight line to zero. Sales are projected at $230$ units per year, price per unit wall be $$18700,$ variabie cost per unt percect.

aveatd on your experience, you thirk the unit sales, variable cost, and traed cost projections given here are probably accurate is whin $110$ percent. What are the upper and lower bounds for these projections? What is the base$-$case NPM$?$ What are the best$-$case andi whist iace ereharias? ta $2$ decimal phens, $8,-2,22$:$36.$ Round your other answers to the nebrest whole numbec, te$9.32.$

$\backslash$table$[[$Scenerie$,$Unit Bras,Veriatle Cont,Tised Ceste,ney$],[$feie$,239,1,11800,1,$E$8000,1,151500600],[$Beet$,283,,15$ ase,,SET$000,,1347,3(20],[$Wry$,201,,,,62000,,$A $6095418]]$

tvakape the senwtivty of your base$-$cave NPV io changess in land cogts.

Note: A negwive anserer should be indicabed by a minus align. De net round i $,$ a decimal places ea$-3215$

Wate: De net round lebermediate calculations and round your anywer to $2$ decieal places, $8-7,12\mathrm{.}14$

Kou bought one of Great White Shark Repellant Company's $\frac{8}{2}$ percent coupon bonds one year ago for $$1050.$ Theie bonds make annual payments and mature $13$ years from now. Suppose you decide to sell your bonds todsy, when the required retum on the bonds is $7.$percent The bendt hive a par val se of $$1000.$ If the intiation rate was $27$ pescent over the past year, what was your total real return on imestment?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ declimal places, e$\mathrm{.}9.,32\mathrm{.}16.$

Anvwer is comptete hut mot entirely cerrect.

Handen

marn

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