Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer Question 7 1 . Please take sales up to $ 6 3 0 , 0 0 0 and down to $ 5 7
Please answer Question
Please take sales up to $ and down to $up by and down by and record the new net present value numbers.
Sales up to $ the net present value is
Sales down to $ the net present value is
Returning to the original numbers, please take disposition value up to $ and down to $up by and down by and record the new net present value numbers.
Disposition value up to $ net present value is
Disposition value down to $ net present value is
Returning to the original numbers, please take variable costs up for all years to and down to up by and down by and record the new net present value numbers.
Returning to the original numbers, please take fixed costs up for all years to $ and down to $up by and down by and record the new net present value numbers.
The net present value at $ is
The net present value at $ is
Returning to the original numbers, please take the tax rate to up to and down to up by and down by and record the new net present value numbers.
Net present value tax rate is
Net present value tax rate is is
Returning to the original numbers, please take the weighted average cost of capital for this project up to and down to up by and down by and record the new net present value numbers.
Capital net present value is
Capital net present value is
From the answer to the prior six problems using the resulting range of outcome after making the changes to the variables, which variable has the greatest influence on the net present value of this project?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started