Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need all these questiosn answered please not just a-1. please dont waste a question of mine again like the previous expert did. thank ylu

image text in transcribedi need all these questiosn answered please not just a-1. please dont waste a question of mine again like the previous expert did. thank ylu so much for the help.
We are evaluating a project that costs $660,000, has a five-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 69,000 units per year. Price per unit is $58, variable cost per unit is $38, and fixed costs are $660,000 per year. The tax rate is 35 percent, and we require a return of 12 percent on this project. 2-1 Calculate the accounting break-even point. (Do not round Intermediate calculations. Round your answer to the nearest whole number, e.g., 32.) Break-even point 33000 units a-2 What is the degree of operating leverage at the accounting break-even point? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g.. 32.161.) DOL b-1 Calculate the base-case cash flow and NPV. (Do not round Intermediate calculations. Round your cash flow answer to the nearest whole number 0.9.72. Round your NPV answer to 2 decimal places, e.g., 32.16.) Cash flow NPV b-2What is the sensitivity of NPV to changes in the sales figure? (Do not round Intermediate calculations and round your answer to 2 decimal places. e.g., 32,16.) ANPV/AO c. What is the sensitivity of OCF to changes in the variable cost figure? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number, e.g. 32.) AOCF Proy 2 of 6 !! Next >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Financial and Managerial Accounting

Authors: Rich Jones, Mowen, Hansen, Heitger

1st Edition

9780538751292, 324787359, 538751290, 978-0324787351

Students also viewed these Finance questions