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Would you be able to help me with the 6 questions on the attachment? Thank you! 7. Calculating IRR. A firm evaluates all of its

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Would you be able to help me with the 6 questions on the attachment?

Thank you!

image text in transcribed 7. Calculating IRR. A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project? Year 0 1 2 3 Cash Flow -$26,000 $11,000 $14,000 $10,000 8. Calculating NPV. For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent? 3. Calculating Projected Net Income. A proposed new investment has projected sales of $635,000. Variable costs are 44 percent of sales, and fixed costs are $193,000; depreciation is $54,000. Prepare a pro forma income statement assuming a tax rate of 35 percent. What is the projected net income? 13. Project Evaluation [LO1] Dog Up! Franks is looking at a new sausage system with an installed cost of $540,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $80,000. The sausage system will save the firm $170,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $29,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project? 1. Calculating Costs and Break-Even. Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable material cost is $9.64 per unit, and the variable labor cost is $8.63 per unit. a) What is the variable cost per unit? b) Suppose NSI incurs fixed costs of $915,000 during a year in which total production is 215,000 units. What are the total costs for the year? c) If the selling price is $39.99 per unit, does NSI break even on a cash basis? If depreciation is $465,000 per year, what is the accounting break-even point? 7. Calculating Break-Even. In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. Unit Price Unit Variable Cost $2,980 $2,135 $46 $9 $41 $3 Fixed Costs $9,000,00 0 $135,000 $1,900 Depreciatio n $3,100,000 $183,000 $930

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