Question 1 Please answer A,B,C Related to Checkpoint 13.41 (Break-even analysis The Marvel Company is considering whether or not to construct a new robotic production facility. The cost of this new city is $12.000 and it is expected to have a nice ife with annual deprecision expense of $102.000 and no selvage value. Annual sales from the new facility are expected to be 1.970 units with a price of $1,000 per unt Variable 5630 per unk are a. Find the accounting and the cash break even units of production b. Will the plan make a prolt bons current expected level of operations? c. Will the plant contribute cash flow to the firm at the expected level of operations? a- a. The accounting break-even units of production is unsts. Round to the nearest whole number) . Question 2 All parts (Related to Checkpoint 13.3) (Scenario analysis) Family Security is considering reducing tny GPS trackers that can be inserted in the sole of a child's shoe, which would then allow for the tracking of the child if he or she was ever lost or abducted. The estimates that might be off by 11 percent (ethe above or below), associated with this new product are shown here . Since this is a new product ine, you are not confident in your estimates and would like to know how well you wil fare if your estimates on the items listed above are 15 percent higher or 11 percent lower than expected. Assume that this new product will require an initial outlay of $1.00 milion, with no working capital investment, and will last for 10 years, being depreciated down to zero using straight-ine depreciation. In addition, the firm's required rate of return or cost of capital is 9.7 percent, and the im's marginal tax rate is 34 percent. Calculate the project's NPV under the best-case scenario" (that is, use the high estimates-unit price 11 percent above expected Variable costs 11 percent less than expected, foxed costs 11 percent less than expected and expected seles 11 percent more than expected. Calculate the project's NPV under the worst case scenario ) ." The NPV for the best-case scenario will be $(Roun Data table Unit price: $126 Variable costs: 580 Fixed costs $254 000 per year Expected sales: 10.800 per year (Click on the icon in order to copy its contents into a spreadsheet) Print Done Question 3 Please answer A,B,C (Related to Checkpoint 134 (Break-even analysis) Accounting Break-Even Price Variable Cost Project Point (in units) per Unit per Unit Fixed Costs Depreciation 6.210 $53 $100,000 $24,000 B 780 $990 $501,000 $103,000 $ 1,980 $24 $14 $4,600 D 1.980 $24 $7 $18,000 (Click on the icon in order to copy its contents into a spreadsheet) a a. Calculate the missing information for each of the above projects b. Note that Projects and share the same accounting break-even. If sales are above the breakeven point which project would you prefer? Explain why c. Calculate the cash breakeven for each of the above projects. What do the differences in accounting and cash break-even tell you about the four projects? a Calculate the missing information for each of the above projects The price per unit for Project is $ Round to the nearest cont.) ]. )
