Question
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $160 per unit; variable costs = $27 per unit; fixed
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $160 per unit; variable costs = $27 per unit; fixed costs = $41976; quantity = 7106 units. Suppose the company believes all of its estimates are accurate only within +/-16 percent. What is the company's EBIT when it performs its best-case scenario analysis?
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $163 per unit; variable costs = $29 per unit; fixed costs = $38007; quantity = 7126 units. Suppose the company believes all of its estimates are accurate only within +/-11 percent. What is the company's EBIT when it performs its worst-case scenario analysis?
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
