Business, 01.03.2021 21:50, Knownothing

We are evaluating a project that costs $832,000, has an eight-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 40,000 units per year. Price per unit is $40, the variable cost per unit is $15, and fixed costs are $728,000 per year. The tax rate is 35 percent, and we require a return of 18 percent on this project. a. Calculate the accounting break-even point. b. Calculate the base-case cash flow and NPV. c. What is the sensitivity of NPV to changes in the sales figure?d. Calculate the change in NPV if sales were to drop by 500 units. e. What is the sensitivity of OCF to changes in the variable cost figure?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 18:20, kierafisher05

James sebenius, in his harvard business review article: six habits of merely effective negotiators, identifies six mistakes that negotiators make that keep them from solving the right problem. identify which mistake is being described. striving for a “win-win” agreement results in differences being overlooked that may result in joint gains.

Answers: 2

continue

Business, 22.06.2019 08:00, truthqmatic16

Compare the sources of consumer credit(there's not just one answer)1. consumers use a prearranged loan using special checks2. consumers use cards with no interest and non -revolving balances3. consumers pay off debt and credit is automatically renewed4. consumers take out a loan with a repayment date and have a specific purposea. travel and entertainment creditb. revolving check creditc. closed-end creditd. revolving credit

Answers: 2

continue

Business, 23.06.2019 12:30, photagraphykid

Use the internet to research legal concerns that could result from increased use of technology in business. discuss some of these concerns.

Answers: 3

continue

Business, 23.06.2019 12:30, Uwa

Food goblin supermarkets use both cashiers and baggers to serve customers at check out. during the first 6 hours of each workday (monday-friday), 3 cashiers and 2 baggers serve approximately 23 customers per hour. a cashier and a bagger who require approximately 4 minutes at checkout and 3 minutes at bagging serve each customer. a. how many employees should food goblin supermarket schedule if it requires a 12 percent capacity cushion? food goblin supermarket should schedule nothing cashier(s). (enter your response rounded up to the nearest whole number.)

Answers: 1

continue

Do you know the correct answer?

We are evaluating a project that costs $832,000, has an eight-year life, and has no salvage value. A...