We are evaluating a project that costs $1,350,000, has a six-year life, and has no . Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 87,000 units per year. Price per unit is $34.25, variable cost per unit is $20.50, and fixed costs are $750,000 per year. The tax rate is 35 percent, and we require an 11 percent return on this project. a. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales. b. What is the sensitivity of OCF to changes in the variable cost figure? Explain what your answer tells you about a $1 decrease in estimated variable costs.
It has never been easier to place your order. Fill in the initial requirements
in the small order form located on the home page and press “continue” button
to proceed to the main order form or press “order” button in the header menu.
Starting from there let our system intuitively guide you through all steps of
ordering process.
2. PROCEED WITH THE PAYMENT
All your payments are processed securely through PayPal. This enables us to
guarantee a 100% security of your funds and process payments swiftly.
3. WRITER ASSIGNMENT
Next, we match up your order details with the most qualified freelance writer
in your field.
4. WRITING PROCESS
Once we have found the most suitable writer for your assignment, they start
working on a masterpiece just for you!
5. DELIVERY
Once finished, your final paper will be available for download through your
personal dashboard. You will also receive an email notification with a copy of
your paper attached to it. Sometimes, the writer may leave a note for you
about the order in case there is any additional information that they need to
give you.
