NO EXCEL- all handwritten with formulas. Suppose that sales for the project under consideration by Newcombe increases from 2000 units to 2200 units per year. Compute the DOL for a project at sales of 2000 units. Use both the definition of DOL and its algebraic equivalent assume Newcombe pays no taxes on this project.

NO EXCEL OR FINANCIAL CALCULATOR- all handwritten with formulas.

Suppose that sales for the project under consideration by Newcombe increases from 2000 units to 2200 units per year. Compute the DOL for a project at sales of 2000 units. Use both the definition of DOL and its algebraic equivalent assume Newcombe pays no taxes on this project.

Use the following information to answer questions 4 and 5 (including their appropriate subsections) D. Newcombe \& Associates, Inc, is considering the introduction of a new product. Production of the new product requires an investment of $140,000 in equipment that has a five-year life. The equipment has no salvage value at the end of five years and will be depreciated on a straight-line basis. Newcombe's required return is 15%, and the tax rate is 34%. The firm has made the following forecasts: Question 4 (4.1) Assume the base-case forecasts for the Newcombe project. Compute the accounting breakeven point. Suppose that sales for the project under consideration by Newcombe increases from 2,000 units to 2,200 units per year. Compute the DOL for project at sales of 2,000 units. Use both the definition of the DOL and its algebraic equivalent. Assume Newcombe pays no taxes on this project