Question
We are evaluating a project that costs $839,925, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over
We are evaluating a project that costs $839,925, 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 59,542 units per year. Price per unit is $43, variable cost per unit is $20, and fixed costs are $420,924 per year. The tax rate is 35%, and we require a return of 21% on this project.
What is the NPV of this base-case? (Round answer to 2 decimal places. Do not round intermediate calculations)
We are evaluating a project that costs $836,812, 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 62,373 units per year. Price per unit is $37, variable cost per unit is $21, and fixed costs are $422,194 per year. The tax rate is 35%, and we require a return of 19% on this project.
Calculate the Financial Break-Even Point. (Round answer to 0 decimal places. Do not round intermediate calculations)
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