subject
Business, 17.10.2019 21:00 ProfS7843

We are evaluating a project that costs $832,000, 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 40,000 units per year. price per unit is $40, variable cost per unit is $15, and fixed costs are $700,000 per year. the tax rate is 35 percent, and we require a return of 18 percent on this project. suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. calculate the accounting break-even point. what is the degree of operating leverage at the accounting break-even point? calculate the base-case cash flow and npv. what is the sensitivity of npv to changes in the sales figure? what is the sensitivity of ocf to changes in the variable cost figure?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 02:50
Acompany set up a petty cash fund with $800. the disbursements are as follows: office supplies $300 shipping $50 postage $30 delivery expense $350 to create the fund, which account should be credited? a. postage b. cash at bank c. supplies d. petty cash
Answers: 2
question
Business, 22.06.2019 03:40
Your parents have accumulated a $170,000 nest egg. they have been planning to use this money to pay college costs to be incurred by you and your sister, courtney. however, courtney has decided to forgo college and start a nail salon. your parents are giving courtney $20,000 to her get started, and they have decided to take year-end vacations costing $8,000 per year for the next four years. use 8 percent as the appropriate interest rate throughout this problem. use appendix a and appendix d for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. how much money will your parents have at the end of four years to you with graduate school, which you will start then?
Answers: 1
question
Business, 22.06.2019 22:00
What resourse is both renewable and inexpensive? gold coal lumber mineral
Answers: 1
question
Business, 23.06.2019 01:20
Petra contracted to paint bret’s house for $2,000. after beginning the job, petra realizes that the house is really quite big, and she’s not going to make enough profit, so she tells bret she wants another $500 to finish the job. bret doesn’t want to pay more, but he’s afraid that if she walks off the job, he’ll have trouble finding someone else to finish it, so he agrees. is bret legally obligated to pay the extra $500?
Answers: 2
You know the right answer?
We are evaluating a project that costs $832,000, has an eight-year life, and has no salvage value. a...
Questions
question
Mathematics, 14.12.2019 02:31
Questions on the website: 13722361