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We are evaluating a project that costs $836,117, 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 63,362 units per year. Price per unit is $38, variable cost per unit is $16, and fixed costs are $424,469 per year. The tax rate is 35 %, and we require a return of 18% on this project. Calculate the Financial Break-Even Point. (Round answer to 0 decimal places. Do not round intermediate calculations) Question 4 We are evaluating a project that costs $841,297, 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 62,152 units per year. Price per unit is $40, variable cost per unit is $21, and fixed costs are $422,878 per year. The tax rate is 35%, and we require a return of 19% on this project. In dollar terms, what is the sensitivity of NPV to changes in the units sold projection? (Round answer to 2 decimal places. Do not round intermediate calculations)

Answer 1

3)

В D Е (Fixed costs+OCF)/ 2 Financial break-even quantity Contribution per unit 31,075 (PMT(18%,8,-836117,0)-(836117/8)* 35%)/(1-35%)+424469)/(38-16)

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