subject
Business, 14.11.2019 06:31 kittykat7315

We are evaluating a project that costs $630,700, has a seven-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 90,000 units per year. price per unit is $46, variable cost per unit is $33, and fixed costs are $720,000 per year. the tax rate is 25 percent, and we require a return of 10 percent on this project. a-1. calculate the accounting break-even point. (do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.)a-2. what is the degree of operating leverage at the accounting break-even point? (do not round intermediate calculations and round your answer to 3 decimal places, e. g., 32.161.)b-1. calculate the base-case cash flow and npv. (do not round intermediate calculations. round your cash flow answer to the nearest whole number, e. g., 32. round your npv answer to 2 decimal places, e. g., 32.16.)b-2. what is the sensitivity of npv to changes in the quantity sold? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)c. what is the sensitivity of ocf to changes in the variable cost figure? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32. )

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 19:40, nessabear9472
Prairie, inc. produces one single product. it has an annual capacity of 10,000 units, but currently uses only 80% of it. each unit is sold for $50 and requires direct material worth $30 and direct labor worth $5. manufacturing overhead cost is $10 per unit of which 70% is variable. should a special order to sell 1,000 units at $44 be accepted? yes no
Answers: 2
image
Business, 22.06.2019 07:30, kennaklein2
When selecting a savings account, you should look at the following factors except annual percentage yield (apy) fees minimum balance interest thresholds taxes paid on the interest variable interest rates
Answers: 1
image
Business, 22.06.2019 15:00, AldecuaF10
Beagle autos is known for its affordable and reliable brand of consumer vehicles. because its shareholders expect to see an improved rate of growth in the coming years, beagle's executives have decided to diversify the company's range of products so that at least 40 percent of the firm's revenue is generated by new business units. however, the company's resources, capabilities, and competencies are limited to producing other forms of motorized vehicles, such as motorcycles and all-terrain vehicles (atvs). which type of corporate diversification strategy should beagle pursue?
Answers: 1
image
Business, 22.06.2019 21:30, marlenerojas201
Which of the following is one of the five fundamental questions? which products will be in scarce supply and which in excess supply? who should appoint the head of the central bank? how much should society save? correct what goods and services will be produced?
Answers: 1
You know the right answer?
We are evaluating a project that costs $630,700, has a seven-year life, and has no salvage value. as...

Questions in other subjects:

Konu
Mathematics, 16.08.2021 23:30