Bonus Homework Questions Saved Help Save & Exit Submit 1 We are evaluating a project...
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Bonus Homework Questions Saved Help Save & Exit Submit 1 We are evaluating a project that costs $364,000, has an eight-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 71,000 units per year Pulce per unit is $49, variable cost per unit is $33, and fixed costs are $765,000 per year. The tax rate is 35%, and we require a 10% return on this project. 2-1. Calculate the accounting break-even point. (Round the final answer to 2 decimal plates. Break even point 54563 units points a-2. What is the degree of operating leverages at the accounting break-even point? (Round the final answer to 3 decimal places.) eBook DOL 8.0833 Print b-1. Calculate the base-case cash flow and NPV (Round the final NPV answers to 2 decimal places. Omir $ sign in your response.) References 96 Cash flow ANPY $ $ % b2. What is the sensitivity of NPV to changes in the sales figure? (Do not round intermediate calculations. Round the final answer to 3 decimal places. Omit $ sign in your response.) ANPV/AQ $ 55.48 c. What is the sensitivity of OCF to changes in the variable cost figure? (Negative answers should be indicated by a minus sign. Omit MELINE Prey 1 of 6 Next > Mc Mc
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