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PLEASE ANSWER THE BLANKS, ALL THE ANSWERS I RECIEVED WERE INCORRECT We are evaluating a project that costs $832,000. has an eight-year life, and has
PLEASE ANSWER THE BLANKS, ALL THE ANSWERS I RECIEVED WERE INCORRECT
We are evaluating a project that costs $832,000. has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 40.000 units per year. Price per unit is $40, variable cost per unit is $15, and fixed costs are $700,000 per year. The tax rate is 35 percent, and we require a 18 percent return on this project. Calculate the accounting break-even point. What is the degree of operating leverage at the accounting break-even point? Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? What is the sensitivity of OCF to changes in the variable cost figure
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