Question
Please show all work 6. Calculate the net present value with a required return of 5%, an initial investment of $45,000, and cash flows of
Please show all work
6. Calculate the net present value with a required return of 5%, an initial investment of $45,000, and cash flows of $9,000, $8,000, $15,000, and $20,000 for years 1 through 4 respectively.
7. Calculate break-even per unit given the following information: sales per unit of $25, variable cost of $13, fixed costs of $5,000. Remember, you cannot have partial units, so you will need to round up if the answer is a decimal.
8. Calculate break-even in dollars given the following information: sales per unit of $40, variable costs of $15, fixed cost of $15,000, and a desired profit of $20,000. Remember, you cannot have partial units, so you will need to round up if the answer is a decimal.
9. Calculate the defree of operating leverage given the following information; sales of $25,000; variable costs of $13,000; and operation income of $7,000 for year one, and sales of $40,000; variable cost of $15,000; and operating income of $16,000 for year 2. Your answer should be rounded to two decimal places. (For this problem, specifically calculate the difference between the sales and the operating income for each of the given years. This will allow you to calculate the degree of operating leverage.)
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