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IUP, Inc has the following estimates for its new project: Price = $1,900 per unit, Variable costs =$240 per unit, Fixed costs = $4.8 million
- IUP, Inc has the following estimates for its new project:
- Price = $1,900 per unit,
- Variable costs =$240 per unit,
- Fixed costs = $4.8 million
- Quantity = 10,000 units The project has a depreciation of $480,000 per year during its ten years life. The tax rate is 34%. Suppose the company believes all of its estimates are accurate only to within 10%, perform scenario analysis for the company. Calculate the NI, NPV and OCF under each scenario!
- Price = $1,900 per unit,
- Variable costs =$240 per unit,
- Fixed costs = $4.8 million
- Quantity = 10,000 units The project has a depreciation of $480,000 per year during its ten years life. The tax rate is 34%. Suppose the company believes all of its estimates are accurate only to within 10%, perform scenario analysis for the company. Calculate the NI, NPV and OCF under each scenario!
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
978-0077398194
