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please do on excel and explain exerything make sure 100% it contains 35 points $ Homework 9 & Help Sheet (35 Points) $ Assignment: Complete
please do on excel and explain exerything make sure 100% it contains 35 points
$ Homework 9 & Help Sheet (35 Points) $ Assignment: Complete the following problems. You must show your work on the math problems to get full credit. Every student is responsible for completing their own responses to the following problems 1. Eastern Automotive has the following base-case estimates for a new small engine assembly project: Capital Investment $10,000,000 Fixed Costs $3,000,000 Variable Costs - $200 per unit Price per Unit -$500 Demand # 20,000 units per year Product Life 10 years Salvage Value -$600,000 MARR 15% A) Find the net present worth, equivalent annual worth, and rate of return of this base-case scenariO. B) If the fixed costs were to be 10% lower, how would it affect the net present worth of the project? What if the variable costs were 10% higher? C) If the variable costs were to be 20% lower, how would it affect the net present worth of the project? What if the variable costs were 20% higher? D) If demand for Eastern Automotive's small engines were to be 15,000 instead of 20,000, how would the net present worth compare to the base-case scenario? What if the demand was 25,000Step by Step Solution
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