Please provide an excel sheet for the calculations. 1. Perform a sensitivity analysis with data provided...
Please provide an excel sheet for the calculations.
1. Perform a sensitivity analysis with data provided
Assume that your selected company is considering a potential
project with a new product that is expected to sell for an average
price of $22 per unit and the company expects it can sell 400 000
units per year at this price for a period of 4 years. Launching
this project will require purchase of a $2 450 000 equipment that
has residual value in four years of $250 000 and adding $ 500 000
in working capital which is expected to be fully retrieved at the
end of the project. Other information is available below:
Depreciation method: straight line
Variable cost per unit: $12
Cash fixed costs per year $250 000
Discount rate: 10%
Tax Rate: 30%
Do an analysis with cash flows of the project to determine the
sensitivity of the project NPV with the following changes in the
value drivers and provide your results in (a) relevant
tables:
Unit sales decrease by 10%
Price per unit decreases by 10%
Variable cost per unit increases 10%
Cash fixed cost per year increases by 10%
2. Perform an NPV break even analysis for the case where price per unit decreases by 10 % to identify the number of unit sales that is needed for the project to get break-even Trial and error method is to be used with excel spread sheet.
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Please provide an excel sheet for the calculations.
1. Perform a sensitivity analysis with data provided...
Perform a sensitivity analysis with data provided Assume that your selected company is considering a potential...
Perform a sensitivity analysis with data provided Assume that your selected company is considering a potential project with a new product that is expected to sell for an average price of $22 per unit and the company expects it can sell 400 000 units per year at this price for a period of 4 years. Launching this project will require purchase of a $2 450 000 equipment that has residual value in four years of $250 000 and adding $...
i need 100% fresh and new answers for both parts 3.1 Perform a scenario analysis on...
i need 100% fresh and new
answers for both parts
3.1 Perform a scenario analysis on the data provided Case Study: Assume that the company, where you are working as a team in Financial Department, is considering a potential project with a new product that is expected to sell for an average price of $22 per unit and the company expects it can sell 650 000 unit per year at this price for a period of 4 years. Launching this...
Problem 7-1 Sensitivity Analysis and Break-Even Point We are evaluating a project that costs $1,160,000, has...
Problem 7-1 Sensitivity Analysis and Break-Even Point We are evaluating a project that costs $1,160,000, has a ten-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 44,000 units per year. Price per unit is $45, variable cost per unit is $20, and fixed costs are $645,000 per year. The tax rate is 35 percent, and we require a return of 20 percent on this project....
3 Problem 11-5 Sensitivity Analysis and Break-Even [LO1, 3] We are evaluating a project that costs...
3 Problem 11-5 Sensitivity Analysis and Break-Even [LO1, 3] We are evaluating a project that costs $691,200, 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 85,000 units per year. Price per unit is $50, variable cost per unit is $35, and fixed costs are $740,000 per year. The tax rate is 24 percent, and we require a return of 10 percent on...
Question 2 25 Marks Kavango Ltd is considering investing in a project at a cost of...
Question 2 25 Marks Kavango Ltd is considering investing in a project at a cost of N$3 000 000. The estimated economic life of the project is 5 years. The company will use the straight-line method to depreciate the cost of the project over 5 years. The company estimates that sales will amount to 240 000 units per year at an estimated selling price of N$40 per unit. The company expects to incur fixed overheads, excluding depreciation of N$300 000...
CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has annual fixed costs totaling $240,000 and variable...
CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has annual fixed costs totaling $240,000 and variable costs of $6 per unit. Each unit of product is sold for $30. Victoria expects to sell 12,000 units this year (this is the base case). Required: Find the break-even point in units. How many units must be sold to earn an annual profit of $100,000? (Round to the nearest unit.) Find the break-even point in sales dollars. What amount of sales dollars is...
answer using excel please 123 Inc. is considering purchasing a new machine. The machine will cost...
answer using excel please
123 Inc. is considering purchasing a new machine. The machine will cost $3,500,000. The machine will be used for a project that lasts 3 years. The expected salvage of the machine at the end of the project is $300,000. The machine will be used to produce widgets. The marketing department has forecasted that the company will be able to sell 280,000 widgets per year. The marketing department believes that the company will be able to charge...
please help me.. i dont know what to do with this “unit sales vc fc are probably accurate with the +- 10%”.. please...
please help me.. i dont know what to do with this “unit sales vc fc
are probably accurate with the +- 10%”.. please help me by giving
the precise amount of best worst base case.. thanks
19. Project Analysis (LO1, 2, 3, 4] You are considering a new product launch. The project will cost $1,700,000, have a four-year life, and have no salvage value: depreciation is straight-line to zero. Sales are projected at 190 units per year; price per unit...
Please answer using excel ONLY & add formulas 123 Inc. is considering purchasing a new machine....
Please answer using excel ONLY & add formulas
123 Inc. is considering purchasing a new machine. The machine will cost $3,500,000. The machine will be used for a project that lasts 3 years. The expected salvage of the machine at the end of the project is $300,000. The machine will be used to produce widgets. The marketing department has forecasted that the company will be able to sell 280,000 widgets per year. The marketing department believes that the company will...
Problem 9-1 Sensltivity Analysis and Break-Even Point We are evaluating a project that costs $650,000, has...
Problem 9-1 Sensltivity Analysis and Break-Even Point We are evaluating a project that costs $650,000, has a five-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 47,000 units per year. Price per unit is $56, variable cost per unit is $26, and fixed costs are $845,000 per year. The tax rate is 35 percent, and we require a return of 10 percent on this project....
i need 100% fresh and new
answers for both parts
3.1 Perform a scenario analysis on the data provided Case Study: Assume that the company, where you are working as a team in Financial Department, is considering a potential project with a new product that is expected to sell for an average price of $22 per unit and the company expects it can sell 650 000 unit per year at this price for a period of 4 years. Launching this...
Problem 7-1 Sensitivity Analysis and Break-Even Point We are evaluating a project that costs $1,160,000, has a ten-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 44,000 units per year. Price per unit is $45, variable cost per unit is $20, and fixed costs are $645,000 per year. The tax rate is 35 percent, and we require a return of 20 percent on this project....
3 Problem 11-5 Sensitivity Analysis and Break-Even [LO1, 3] We are evaluating a project that costs $691,200, 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 85,000 units per year. Price per unit is $50, variable cost per unit is $35, and fixed costs are $740,000 per year. The tax rate is 24 percent, and we require a return of 10 percent on...
Question 2 25 Marks Kavango Ltd is considering investing in a project at a cost of N$3 000 000. The estimated economic life of the project is 5 years. The company will use the straight-line method to depreciate the cost of the project over 5 years. The company estimates that sales will amount to 240 000 units per year at an estimated selling price of N$40 per unit. The company expects to incur fixed overheads, excluding depreciation of N$300 000...
answer using excel please
123 Inc. is considering purchasing a new machine. The machine will cost $3,500,000. The machine will be used for a project that lasts 3 years. The expected salvage of the machine at the end of the project is $300,000. The machine will be used to produce widgets. The marketing department has forecasted that the company will be able to sell 280,000 widgets per year. The marketing department believes that the company will be able to charge...
please help me.. i dont know what to do with this “unit sales vc fc
are probably accurate with the +- 10%”.. please help me by giving
the precise amount of best worst base case.. thanks
19. Project Analysis (LO1, 2, 3, 4] You are considering a new product launch. The project will cost $1,700,000, have a four-year life, and have no salvage value: depreciation is straight-line to zero. Sales are projected at 190 units per year; price per unit...
Please answer using excel ONLY & add formulas
123 Inc. is considering purchasing a new machine. The machine will cost $3,500,000. The machine will be used for a project that lasts 3 years. The expected salvage of the machine at the end of the project is $300,000. The machine will be used to produce widgets. The marketing department has forecasted that the company will be able to sell 280,000 widgets per year. The marketing department believes that the company will...
Problem 9-1 Sensltivity Analysis and Break-Even Point We are evaluating a project that costs $650,000, has a five-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 47,000 units per year. Price per unit is $56, variable cost per unit is $26, and fixed costs are $845,000 per year. The tax rate is 35 percent, and we require a return of 10 percent on this project....
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