Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
plz help!! We are evaluating a project that costs $2.500.000 has a 7-year We, and has no savage value Assume that depreciation is straight line
plz help!! We are evaluating a project that costs $2.500.000 has a 7-year We, and has no savage value Assume that depreciation is straight line to zero over theme of the project. Sales are projected at 98.600 units per year Price per unit is $3779, variable cost per units $23.90, and foed costs are $857000 per year. The tax rate is 24 percent and we require a return of 10 percent on this project a. Calculate the base case operating cash flow and NPV (Do not round intermediate calculations and round your answers to 2 decimal places, eg. 32.16.) b. What is the sensitivity of NPV 10 changes in the sales figure? (Do not found intermediate calculations and round your answer to 3 decimal places, e.g. 32.161) c. there is a 500 unit decrease in projected sales, how much would the NPV change? A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to 2 decimal places, e9.3216) d. What is the sensitivity of OCE to changes in the variable cost figure (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, eg, 32) e. If there is a decrease in estimated Varsable costs, how much would the OC change? Do not found intermediate calculations and round your answer to the nearest whole number, eg.32) Duse-case perting cash flow Date care NPV h. V NPV change d. OCE OCH to teach $ W E R
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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