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only b and d Suppose you are considering an investment project that requires $1,250,000 has a six-year life, and has a salvage value of $700,000

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only b and d
Suppose you are considering an investment project that requires $1,250,000 has a six-year life, and has a salvage value of $700,000 Sales volume is projected to be 65,000 units per year. Price per unit is $63, variable cost per unit is $42, and fixed costs are $532,000 per year. The depreciation method is a five-year MACRS. The tax rate is 35% and you expect a 20% return on this investment (a) Determine the break-even sales volume. (b) Calculate the cash flows of the base case over six years and its NPW. (c) If the sales price per unit increases to $400, what is the required break-even volume? (d) Suppose the projections given for price, sales volume, variable costs, and fixed costs are all accurate to within :15%. What would be the NPW figures of the best-case and worst-case scenarios? Suppose you are considering an investment project that requires $1,250,000 has a six-year life, and has a salvage value of $700,000 Sales volume is projected to be 65,000 units per year. Price per unit is $63, variable cost per unit is $42, and fixed costs are $532,000 per year. The depreciation method is a five-year MACRS. The tax rate is 35% and you expect a 20% return on this investment (a) Determine the break-even sales volume. (b) Calculate the cash flows of the base case over six years and its NPW. (c) If the sales price per unit increases to $400, what is the required break-even volume? (d) Suppose the projections given for price, sales volume, variable costs, and fixed costs are all accurate to within :15%. What would be the NPW figures of the best-case and worst-case scenarios

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