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Hello - I have asked this question once before and received incorrect answers. Please help me figure out what went wrong - Thank you! a.
Hello - I have asked this question once before and received incorrect answers. Please help me figure out what went wrong - Thank you!
a. Break-even point 35,285.00 selected answer incorrect units
b-1. Cash flow $328,830 selected answer correct
NPV $(339,193.52) selected answer incorrect
b-2. NPV/Q $36.897 selected answer incorrect
b-3. NPV would decreaseselected answer correct by $-302,824.31 selected answer incorrect
c. OCF/VC $55 selected answer incorrect
1 a. We are evaluating a project that costs $1,140,000, has a ten-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 54,000 units per year. Price per unit is $50, variable cost per unit is $29, and fixed costs are $741,000 per year. The tax rate is 23 percent, and we require a return of 18 percent on this project. Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Calculate the base-case cash flow and NPV. (Do not round intermediate calculations and round your NPV answer to 2 decimal places, e.g., 32.16.) b-2. What is the sensitivity of NPV to changes in the sales figure? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b-3. Calculate the change in NPV if sales were to drop by 500 units. (Enter your answer as a positive number. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the sensitivity of OCF to changes in the variable cost figure? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) units a. Break-even point b-1. Cash flow NPV b-2. ANPV/AQ b-3. NPV would c. AOCF/AVC by
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