Business, 11.11.2019 19:31, kyleryoung0602
We are evaluating a project that costs $630,700, has a seven-year life, and has no salvage value. assume that depreciation is straight-line to zero over the life of the project. sales are projected at 90,000 units per year. price per unit is $46, variable cost per unit is $33, and fixed costs are $720,000 per year. the tax rate is 25 percent, and we require a return of 10 percent on this project.
a-1.
calculate the accounting break-even point. (do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.)
a-2. what is the degree of operating leverage at the accounting break-even point? (do not round intermediate calculations and round your answer to 3 decimal places, e. g., 32.161.)
b-1. calculate the base-case cash flow and npv. (do not round intermediate calculations. round your cash flow answer to the nearest whole number, e. g., 32. round your npv answer to 2 decimal places, e. g., 32.16.)
b-2. what is the sensitivity of npv to changes in the quantity sold? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
Answers: 1
Business, 22.06.2019 09:40, cerna
Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?
Answers: 1
Business, 22.06.2019 19:00, erbs2003
Which of the following would cause a shift to the right of the supply curve for gasoline? i. a large increase in the price of public transportation. ii. a large decrease in the price of automobiles. iii. a large reduction in the costs of producing gasoline
Answers: 1
Business, 22.06.2019 21:00, crazylogic963
China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. the move is hitting hard at the japanese, who consume 25 billion set of wooden chopsticks annually. almost all of the chopsticks used in japan come from china. the reuirements for chinese manufacturers of wooden chopsticks to pay the 5 percent tax is a factor in their external environment.
Answers: 3
We are evaluating a project that costs $630,700, has a seven-year life, and has no salvage value. as...
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