Question: what am i missing ? Use this information to answer questions 23-27 BeatKat Enterprises has a WACC of 7.5% BearKat Enterprises wants you to do



Use this information to answer questions 23-27 BeatKat Enterprises has a WACC of 7.5% BearKat Enterprises wants you to do a sensitivity analysis where you increase the mask price by 10% and decrease it by 10%. Also see what happens when you increase the variable costs by 10% and decrease them by 10%. QUESTION 23 Use the information from part IV to answer this. What is the NPV of the project if the price of the mask is increased by 10%? A. -$30,956.77 OB. $12,123.44 OC. $10,871.80 OD. $36,789.00 QUESTION 24 Use the information from part IV to answer this. What is the NPV of the project if the price of the mask is decreased by 10%? O A. -$17,184.20 B. -$22,045.38 OC. $10,566.77 OD. $26,789.76 Use the information from part IV to answer this. What is the NPV of the project if the variable cost to make the mask is decreased by 10%? A. -$25,702.84 OB. -$32,123.44 C. $32,995.50 D. $14,529.26 QUESTION 26 Use the information from part IV to answer this. What is the NPV of the project if the variable cost to make the mask is increased by 10%? A. -$25,702.84 B. -$32,123.44 O C. $22,995.50 D. $14,529.26 Changing the variable costs by 10% has a bigger impact on the NPV then changing the price of the mask by 10%. True False QUESTION 28 Use the information given for part V; Scenario analysis. What is the expected NPV of this project? A. $15M OB. 56M O C. -$15M OD.-520M Part III: Cash Flow Estimation Use this information to answer questions 16 - 22. Bearkat Enterprises is considering a project where they will make high end designer face mask They can buy the equipment they need to make the face masks for $200,000 plus another $10,000 for training and installation. They will have to increase inventory by $15,000 and accounts payable will increase $2,000. They think they can sell 20,000 masks a year at a price of $7 each for 4 years. The estimate variable costs at 55% of revenue. They follow a four yeas MACRS schedule for depreciation with the following depreciation rates: Year 1: 33% Year 2: 45% Year 3: 15% Year 4: 7% 33% 2:45% 3:15% ar 4: 7% 2 They believe the equipment has a salvage value of $5,000. Bearkat Enterprises has a tax rate of 22%. Once the project is done the additional inventory will not need to be purchased and the accounts payable balance will be paid. Part IV Sensitivity Analysis
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