Business, 08.11.2019 06:31 bobiscool3698

We are evaluating a project that costs $1,180,000, has a ten-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 66,000 units per year. price per unit is $45, variable cost per unit is $25, and fixed costs are $750,000 per year. the tax rate is 35 percent, and we require a return of 15 percent on this project. a-1 calculate the accounting break-even point. (do not round intermediate calculations. round your answer to the nearest whole number, e. g., 32.) break-even point units a-2 what is the degree of operating leverage at the accounting break-even point? (do not round intermediate calculations. round your answer to 3 decimal places, e. g., 32.161.) dol 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.) cash flow $ npv $ b-2 what is the sensitivity of npv to changes in the sales figure? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) δnpv/δq $ c. what is the sensitivity of ocf to changes in the variable cost figure? (negative amount should be indicated by a minus sign. do not round intermediate calculations. round your answer to the nearest whole number, e. g., 32. ) δocf/δvc $

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We are evaluating a project that costs $1,180,000, has a ten-year life, and has no salvage value. as...

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