More Info - Suppose you are considering an investment project that requires $1,200,000, has a six-year life, and has a salvage value costs are $536,000 per year. The depreciation method is a five-year MACRS. The tax rate is 40% and you expect a 16% re Click the icon to view the MACRS depreciation schedules Class 10 15 20 Year n Depreciation 200% 200% 200% 200% 150% 150% rate More Info x Perio 1 20.00 32.00 0 33.33 44.45 14.81* 7.41 1 19.20 2 11.52* 11.52 5.76 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 3 4 N 5 Single Payment Compound Present Amount Worth Factor Factor (F/P, I, N) (P/F, I, N) 1.1600 0.8621 1.3456 0.7432 1.5609 0.6407 1.8106 0.5523 2.1003 0.4761 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 Compound Amount Factor (F/A, I, N) 1.0000 2.1600 3.5056 5.0665 6.8771 1 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, I, N) 1.0000 0.8621 0.4630 1.6052 0.2853 2.2459 0.1974 2.7982 0.1454 3.2743 Capital Recovery Factor (A/P, I, N) 1.1600 0.6230 0.4453 0.3574 0.3054 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 6 2 3 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4 5 6 7 0%. 8 9 10 2.4364 2.8262 3.2784 3.8030 4.4114 0.4104 0.3538 0.3050 0.2630 0.2267 8.9775 11.4139 14.2401 17.5185 21.3215 0.1114 0.0876 0.0702 0.0571 0.0469 3.6847 4.0386 4.3436 4.6065 4.8332 0.2714 0.2476 0.2302 0.2171 0.2069 Print Done Print Done More Info Suppose you are considering an investment project that requires $1,200,000, has a six-year life, and has a salvage value costs are $536,000 per year. The depreciation method is a five-year MACRS. The tax rate is 40% and you expect a 16% re 200% 200% 150% Click the icon to view the MACRS depreciation schedules 150% 1 More Info X Perio 0 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 1 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 2 3 4 N 5 Single Payment Compound Present Amount Worth Factor Factor (F/P, I, N) (P/F, I, N) 1.1600 0.8621 1.3456 0.7432 1.5609 0.6407 1.8106 0.5523 2.1003 0.4761 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 Compound Amount Factor (F/A, I, N) 1.0000 2.1600 3.5056 5.0665 6.8771 Depreciation Year n 200% 200% rate 33.33 20.00 2 44.45 32.00 3 14.81* 19.20 4 7.41 11.52* 5 11.52 6 5.76 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 * Year to switch from declining balance to straight line Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, I, N) 1.0000 0.8621 0.4630 1.6052 0.2853 2.2459 0.1974 2.7982 0.1454 3.2743 1 Capital Recovery Factor (A/P, I, N) 1.1600 0.6230 0.4453 0.3574 0.3054 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 6 2 3 4 5 6 7 0%. 8 9 10 2.4364 2.8262 3.2784 3.8030 4.4114 0.4104 0.3538 0.3050 0.2630 0.2267 8.9775 11.4139 14.2401 17.5185 21.3215 0.1114 0.0876 0.0702 0.0571 0.0469 3.6847 4.0386 4.3436 4.6065 4.8332 0.2714 0.2476 0.2302 0.2171 0.2069 Print Done Print Done Suppose you are considering an investment project that requires $1,200,000, has a six-year life, and has a salvage value of $150,000. Sales volume is projected to be 66,000 units per year. Price per unit is $71, variable cost per unit is $56, and fixed costs are $536,000 per year. The depreciation method is a five-year MACRS. The tax rate is 40% and you expect a 16% return on this investment. Click the icon to view the MACRS depreciation schedules. Click the icon to view the interest factors for discrete compounding when i = 16% per year. Period Annual Net Cash Flow 1 $ 2 $ 3 $ 4 5 $ $ 6 The NPW of the project based on its base-case scenario is $]. (Round to the nearest dollar.) (c) If the sales price per unit increases to $420, what is the required break-even volume? The required break-even sales volume is units. (Round to the nearest whole number.) (d) Suppose the projections given for price, sales volume, variable costs, and fixed costs are all accurate to within + 10%. What would be the NPW figures of the best-case and worst-case scenarios? The NPW of the project based on its best-case scenario is $ (Round to the nearest dollar.) The NPW of the project based on its worst-case scenario is $(Round to the nearest dollar.) Enter your answer in each of the answer boxes. More Info - Suppose you are considering an investment project that requires $1,200,000, has a six-year life, and has a salvage value costs are $536,000 per year. The depreciation method is a five-year MACRS. The tax rate is 40% and you expect a 16% re Click the icon to view the MACRS depreciation schedules Class 10 15 20 Year n Depreciation 200% 200% 200% 200% 150% 150% rate More Info x Perio 1 20.00 32.00 0 33.33 44.45 14.81* 7.41 1 19.20 2 11.52* 11.52 5.76 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 3 4 N 5 Single Payment Compound Present Amount Worth Factor Factor (F/P, I, N) (P/F, I, N) 1.1600 0.8621 1.3456 0.7432 1.5609 0.6407 1.8106 0.5523 2.1003 0.4761 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 Compound Amount Factor (F/A, I, N) 1.0000 2.1600 3.5056 5.0665 6.8771 1 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, I, N) 1.0000 0.8621 0.4630 1.6052 0.2853 2.2459 0.1974 2.7982 0.1454 3.2743 Capital Recovery Factor (A/P, I, N) 1.1600 0.6230 0.4453 0.3574 0.3054 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 6 2 3 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4 5 6 7 0%. 8 9 10 2.4364 2.8262 3.2784 3.8030 4.4114 0.4104 0.3538 0.3050 0.2630 0.2267 8.9775 11.4139 14.2401 17.5185 21.3215 0.1114 0.0876 0.0702 0.0571 0.0469 3.6847 4.0386 4.3436 4.6065 4.8332 0.2714 0.2476 0.2302 0.2171 0.2069 Print Done Print Done More Info Suppose you are considering an investment project that requires $1,200,000, has a six-year life, and has a salvage value costs are $536,000 per year. The depreciation method is a five-year MACRS. The tax rate is 40% and you expect a 16% re 200% 200% 150% Click the icon to view the MACRS depreciation schedules 150% 1 More Info X Perio 0 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 1 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 2 3 4 N 5 Single Payment Compound Present Amount Worth Factor Factor (F/P, I, N) (P/F, I, N) 1.1600 0.8621 1.3456 0.7432 1.5609 0.6407 1.8106 0.5523 2.1003 0.4761 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 Compound Amount Factor (F/A, I, N) 1.0000 2.1600 3.5056 5.0665 6.8771 Depreciation Year n 200% 200% rate 33.33 20.00 2 44.45 32.00 3 14.81* 19.20 4 7.41 11.52* 5 11.52 6 5.76 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 * Year to switch from declining balance to straight line Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, I, N) 1.0000 0.8621 0.4630 1.6052 0.2853 2.2459 0.1974 2.7982 0.1454 3.2743 1 Capital Recovery Factor (A/P, I, N) 1.1600 0.6230 0.4453 0.3574 0.3054 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 6 2 3 4 5 6 7 0%. 8 9 10 2.4364 2.8262 3.2784 3.8030 4.4114 0.4104 0.3538 0.3050 0.2630 0.2267 8.9775 11.4139 14.2401 17.5185 21.3215 0.1114 0.0876 0.0702 0.0571 0.0469 3.6847 4.0386 4.3436 4.6065 4.8332 0.2714 0.2476 0.2302 0.2171 0.2069 Print Done Print Done Suppose you are considering an investment project that requires $1,200,000, has a six-year life, and has a salvage value of $150,000. Sales volume is projected to be 66,000 units per year. Price per unit is $71, variable cost per unit is $56, and fixed costs are $536,000 per year. The depreciation method is a five-year MACRS. The tax rate is 40% and you expect a 16% return on this investment. Click the icon to view the MACRS depreciation schedules. Click the icon to view the interest factors for discrete compounding when i = 16% per year. Period Annual Net Cash Flow 1 $ 2 $ 3 $ 4 5 $ $ 6 The NPW of the project based on its base-case scenario is $]. (Round to the nearest dollar.) (c) If the sales price per unit increases to $420, what is the required break-even volume? The required break-even sales volume is units. (Round to the nearest whole number.) (d) Suppose the projections given for price, sales volume, variable costs, and fixed costs are all accurate to within + 10%. What would be the NPW figures of the best-case and worst-case scenarios? The NPW of the project based on its best-case scenario is $ (Round to the nearest dollar.) The NPW of the project based on its worst-case scenario is $(Round to the nearest dollar.) Enter your answer in each of the answer boxes