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I cant figure these two out and Ive reworked the problems twice. Help please? Question 3 0 out of 3 points For the in-class exercise
I cant figure these two out and Ive reworked the problems twice. Help please?
Question 3 0 out of 3 points For the in-class exercise in the slide 4, which one of the four scenarios listed below generates the highest NPV? Holding all the other values constant(e.g, cost of sales =$15 per unit, SGA-$20,000, cost of X capital = 15%) Hint: See the solution to the in-class exercise in the excel file "2. In-class exercise - DCF analysis". Scenario Sale Price ($/unit) Expected Units Sold (thousands) Scenario 1 25 10 Scenario 2 22 13 Scenario 3 26 9.5 Scenario 4 24 11 Selected Answer: B. Scenario 2 Response Feedback: Refer to the example in the slide 11 Question 9 O out of 3 points (Note that the incremental fixed cost is $20,000, annual Suppose you have found the unlevered net income (see below), now work backwards to find the economic break-even level of quantity, which is depreciation is $40,000, sale price is $30 per unit, and variable cost is $20 per unit) Instruction: Type ONLY your numerical answer, NO $ sign, NO comma sign. ($30/unit) ($20/unit) Revenues Variable Costs Gross Profit Required Fixed Costs Depreciation EBIT Tax @ 35% Unlevered net income 20,000 - 40,000 65,000 Selected Answer: 2000 Response Feedback: See the example in the slide 23Step by Step Solution
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