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You are required to solve this question using EXCEL 11.16 Suppose you are considering an investment project that requires $800,000, has a six-year life, and

You are required to solve this question using EXCEL

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11.16 Suppose you are considering an investment project that requires $800,000, has a six-year life, and has a salvage value of $100,000. Sales volume is projected to be 65,000 units per year. Price per unit is $63, variable cost per unit is $42, and fixed costs are $532,000 per year. The depreciation method is a five-year MACRS. The tax rate is 35% and you expect a 20% return on this investment. (a) Determine the break-even sales volume. (b) Calculate the cash flows of the base case over six years and its NPW. (c) If the sales price per unit increases to $400, what is the required break-even volume? (d) Suppose the projections given for price, sales volume, variable costs, and fixed costs are all accurate to within 15%. What would be the NPW figures of the best-case and worst-case scenarios

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