Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. other answers for similar/same question on chegg a

other answers for similar/same question on chegg are incorrect We are evaluating a project...

80.2K

Verified Solution

Question

Accounting

image

other answers for similar/same question on chegg are incorrect

We are evaluating a project that costs $864,000, 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. Price per unit is $49, variable co: 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. a-1. Calculate the accounting break-even point. (Round the final answer to 2 decima places.) Break even point units a-2. What is the degree of operating leverage at the accounting break-even point? (Round the final answer to 3 decimal places.) DOL b-1. Calculate the base-case cash flow and NPV. (Round the final NPV answers to 2 decimal places. Omit $ sign in your response.) b-2. 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.) NPV/Q $ c. What is the sensitivity of OCF to changes in the variable cost figure? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Calculus
1.2K views

4 Let f 0 tan and g 0 cot 0 Which of the following statements...

Biology
1.2K views

____________ contractions cause urine to flow into the urinary bladder.

Physics
1.2K views

A driver notices that her 1080-kg car, when in neutral, slows down from 95 km/h...

Geometry
1.2K views

17 Of the students at Wayland High School in the first quarter 48 made honor...

Basic Math
1.2K views

One of two complementary angles Is 8 degrees less than the other.Which of the following...

Basic Math
1.2K views

Find the equation of the line through (8, -7) which is perpendicular to the line...

Algebra
1.2K views

and v Compute the area of the parallelogram determined by u v u v and...

Accounting
1.2K views

Exercise 21-4 Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales...

Accounting
1.2K views

User scott uses company car since 1st april 2022. the car value as 78000,...

Accounting
1.2K views

QUESTION 1 When reporting operating activities by the indirect method in a statement of cash...

Accounting
1.2K views

Please explain the impact on financial reporting if a lessor grossly inflates the residual value...

Accounting
1.2K views

14. Recording inventory at net realizable value is permitted, even if it is above cost,...