subject
Business, 01.03.2021 21:50 Knownothing

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, the variable cost per unit is $15, and fixed costs are $728,000 per year. The tax rate is 35 percent, and we require a return of 18 percent on this project. a. Calculate the accounting break-even point. b. Calculate the base-case cash flow and NPV. c. What is the sensitivity of NPV to changes in the sales figure?d. Calculate the change in NPV if sales were to drop by 500 units. e. What is the sensitivity of OCF to changes in the variable cost figure?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 03:30
Eagle sporting goods reported the following data at july ​31, 2016​, with amounts adapted in​ thousands: ​(click the icon to view the income​ statement.) ​(click the icon to view the statement of retained​ earnings.) ​(click the icon to view the balance​ sheet.) 1. compute eagle​'s net working capital. 2. compute eagle​'s current ratio. round to two decimal places. 3. compute eagle​'s debt ratio. round to two decimal places. do these values and ratios look​ strong, weak or​ middle-of-the-road? 1. compute eagle​'s net working capital. total current assets - total current liabilities = net working capital 99400 - 30000 = 69400 2. compute eagle​'s current ratio. ​(round answer to two decimal​ places.) total current assets / total current liabilities = current ratio 99400 / 30000 = 3.31 3. compute eagle​'s debt ratio. ​(round answer to two decimal​ places.) total liabilities / total assets = debt ratio 65000 / 130000 = 0.50 do these ratio values and ratios look​ strong, weak or​ middle-of-the-road? net working capital is ▾ . this means ▾ current assets exceed current liabilities current liabilities exceed current assets and is a ▾ negative positive sign. eagle​'s current ratio is considered ▾ middle-of-the-road. strong. weak. eagle​'s debt ratio is considered ▾ middle-of-the-road. strong. weak. choose from any list or enter any number in the input fields and then continue to the next question.
Answers: 3
question
Business, 22.06.2019 12:40
Evan company reports net income of $232,000 each year and declares an annual cash dividend of $100,000. the company holds net assets of $2,130,000 on january 1, 2017. on that date, shalina purchases 40 percent of evan's outstanding common stock for $1,066,000, which gives it the ability to significantly influence evan. at the purchase date, the excess of shalina’s cost over its proportionate share of evan’s book value was assigned to goodwill. on december 31, 2019, what is the investment in evan company balance (equity method) in shalina’s financial records?
Answers: 2
question
Business, 22.06.2019 16:30
Penelope summers received certain income benefits in 2018. she received $1,400 of state unemployment insurance benefits, $2,000 from a federal unemployment trust fund and $3,700 workers’ compensation received for an occupational injury. what amount of the compensation must penelope include in her income
Answers: 1
question
Business, 22.06.2019 20:20
Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale.required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse.b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this.c. explain the difference between sale of receivables with recourse as oppose to without recourse.
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, 25.02.2020 23:27
question
Mathematics, 25.02.2020 23:27
Questions on the website: 13722361