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3.2. Risk Analysis and Project evaluation: NPV break-even analysis (8 marks) Assume that for Project 2, the company finally chose Option B. It expects to

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3.2. Risk Analysis and Project evaluation: NPV break-even analysis (8 marks) Assume that for Project 2, the company finally chose Option B. It expects to sell 8,500 wheelchairs for an average price of $750 per unit. The assembly in Option B has a residual value of $350 000 at the end of the project. The company will need to add $ 850 000 in working capital which is expected to be fully retrieved at the end of the project. Other information is available below: Depreciation method: straight line Variable cost per unit: $120 Cash fixed costs per year: $35,000 of annual cost for assembly operation + $20,000 other fixed cost Corporate marginal tox: 30% Upon the forecast of unexpected economic conditions that may be caused by the current breakout of corona virus, the company management requires your Team to prepare a risk analysis for the case where the unit price of this product decreases by 25%. Required: perform an NPV break-even analysis to identify break-even sales of the project when the unit price decreases by 25%. Conclusion Summarize / Reflection the outcomes of your group's works (not more than 150 words) Hote Comments OCT Want To 00 at Convert PDF 2 Word A New Foreign Polley B. M16026 Group Assignm... HIS002 Group Assignme.. calculations 3.2. Risk Analysis and Project evaluation: NPV break-even analysis (8 marks) Assume that for Project 2, the company finally chose Option B. It expects to sell 8,500 wheelchairs for an average price of $750 per unit. The assembly in Option B has a residual value of $350 000 at the end of the project. The company will need to add $ 850 000 in working capital which is expected to be fully retrieved at the end of the project. Other Information is available below: Depreciation method straight line Variable cost per unit: $120 Cash fixed costs per year $35,000 of annual cost for assembly operation $20,000 other fixed cost Corporate marginal tox: 30% Upon the forecast of unexpected economic conditions that may be caused by the current breakout of corona virus, the company management requires your Team to prepare a risk analysis for the case where the unit price of this product decreases by 25%. Required: perform an NPV break-even analysis to identify break-even sales of the project when the unit price decreases by 25%. Conclusion Summarize / Reflection the outcomes of your group's works (not more than 150 words) Assignment Preparation guideline/ Important Note: Students are required to attend tai Trial Care Weal oldanie land Alan TAR 71 fart in the 116/10 100% 3.2. Risk Analysis and Project evaluation: NPV break-even analysis (8 marks) Assume that for Project 2, the company finally chose Option B. It expects to sell 8,500 wheelchairs for an average price of $750 per unit. The assembly in Option B has a residual value of $350 000 at the end of the project. The company will need to add $ 850 000 in working capital which is expected to be fully retrieved at the end of the project. Other information is available below: Depreciation method: straight line Variable cost per unit: $120 Cash fixed costs per year: $35,000 of annual cost for assembly operation + $20,000 other fixed cost Corporate marginal tox: 30% Upon the forecast of unexpected economic conditions that may be caused by the current breakout of corona virus, the company management requires your Team to prepare a risk analysis for the case where the unit price of this product decreases by 25%. Required: perform an NPV break-even analysis to identify break-even sales of the project when the unit price decreases by 25%. Conclusion Summarize / Reflection the outcomes of your group's works (not more than 150 words) Hote Comments OCT Want To 00 at Convert PDF 2 Word A New Foreign Polley B. M16026 Group Assignm... HIS002 Group Assignme.. calculations 3.2. Risk Analysis and Project evaluation: NPV break-even analysis (8 marks) Assume that for Project 2, the company finally chose Option B. It expects to sell 8,500 wheelchairs for an average price of $750 per unit. The assembly in Option B has a residual value of $350 000 at the end of the project. The company will need to add $ 850 000 in working capital which is expected to be fully retrieved at the end of the project. Other Information is available below: Depreciation method straight line Variable cost per unit: $120 Cash fixed costs per year $35,000 of annual cost for assembly operation $20,000 other fixed cost Corporate marginal tox: 30% Upon the forecast of unexpected economic conditions that may be caused by the current breakout of corona virus, the company management requires your Team to prepare a risk analysis for the case where the unit price of this product decreases by 25%. Required: perform an NPV break-even analysis to identify break-even sales of the project when the unit price decreases by 25%. Conclusion Summarize / Reflection the outcomes of your group's works (not more than 150 words) Assignment Preparation guideline/ Important Note: Students are required to attend tai Trial Care Weal oldanie land Alan TAR 71 fart in the 116/10 100%

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