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You are considering a new product launch. The project will cost $ 8 3 0 , 0 0 0 , have a 4 - yearb.
You are considering a new product launch. The project will cost $ have a yearb. Calculate the sensitivity of your basecase NPV to changes in fixed costs. AYou are considering a new product launch. The project will cost $ have a year
life, and have no salvage value; depreciation is straightline to zero. Sales are projected
at units per year, price per unit will be $ variable cost per unit will be $
and fixed costs will be $ per year. The required return on the project is
percent, and the relevant tax rate is percent.
a The unit sales, variable cost, and fixed cost projections given above are probably
accurate to within percent. What are the upper and lower bounds for these
projections? What is the basecase NPV What are the bestcase and worstcase
scenarios? A negative amount should be indicated by a minus sign. Do not round
intermediate calculations and round your NPV answers to decimal places, eg
b Calculate the sensitivity of your basecase NPV to changes in fixed costs. A
negative amount should be indicated by a minus sign. Do not round intermediate
calculations and round your answer to decimal places, eg
c What is the accounting breakeven level of output for this project? Do not round
intermediate calculations and round your answer to decimal places, eg
negative amount should be indicated by a minus sign. Do not round intermediate
calculations and round your answer to decimal places, eg
c What is the accounting breakeven level of output for this project? Do not round
intermediate calculations and round your answer to decimal places, eg
life, and have no salvage value; depreciation is straightline to zero. Sales are projected
at units per year, price per unit will be $ variable cost per unit will be $
and fixed costs will be $ per year. The required return on the project is
percent, and the relevant tax rate is percent.
a The unit sales, variable cost, and fixed cost projections given above are probably
accurate to within percent. What are the upper and lower bounds for these
projections? What is the basecase NPV What are the bestcase and worstcase
scenarios? A negative amount should be indicated by a minus sign. Do not round
intermediate calculations and round your NPV answers to decimal places, eg
I just need b & c the rest are correct. Thanks!
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