2 ACCOUNTING AND FINANCE FOR MANAGEMENT The Star Holiday Company, a producer of specialty cards, has asked you to complete several calculations based upon the following information: 30% RM 6.60 Income tax rate Selling price per unit Variable cost per unit Total fixed costs RM 5.28 RM 46,200.00 Required: What is the breakeven point in cards? 5 What sales volume is needed to earn an after-tax net income of RM13.028.40? a 1 A BIE x2 % of stion Sakaran Dadai is thinking of launching a project with a 3-year lifespan. Currently, Sakaran Dandai is utilizing the cost of capital of 18% for this project. Based on his analysis, he has prepared the following cash flow projections: Year 1 2 3 Sales (RM) 250,000 300,000 350,000 Cost of Goods Sold 150,000 (60% of Sales)(RM) 180,000 210,000 Interest Expense 30,000 40,000 50,000 Depreciation 60,000 70,000 80,000 Taxes (35%) Changes to working 10,000 12,000 capital Capital expenditures 150,000 6,000 D) Find the Free Cash Flow for year 1.2 and 3 (6 points) m Find the NPV and IRR for this project? (4 marks iii) You are thinking of adding another machine into your manufacturing producing soya sauce. The addition of the new machine will approximately cost around RM450,000. This machine has 5-year depreciation Assuming your company tax rate is 30%, what is the depreciation tax shield for the first year