We are evaluating a project that costs $837,434, 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 56,652 units per year. Price per unit is $39, variable cost per unit is $19, and fixed costs are $421,397 per year. The tax rate is 35%, and we require a return of 21% on this project.
Calculate the Accounting Break-Even Point.
We are evaluating a project that costs $841,485, 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 63,390 units per year. Price per unit is $39, variable cost per unit is $16, and fixed costs are $416,647 per year. The tax rate is 35%, and we require a return of 19% on this project.
Calculate the Financial Break-Even Point.
We are evaluating a project that costs $837,434, has an eight-year life, and has no salvage...
We are evaluating a project that costs $842,060, 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 60,726 units per year. Price per unit is $38, variable cost per unit is $17, and fixed costs are $415,433 per year. The tax rate is 35%, and we require a return of 20% on this project. Calculate the Accounting Break-Even Point. (Round answer to 0...
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...
We are evaluating a project that costs $838917, 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 61793 units per year. Price per unit is $36, variable cost per unit is $16, and fixed costs are $417398 per year. The tax rate is 35%, and we require a return of 19% on this project. In percentage terms, what is the sensitivity of NPV...
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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...
We are evaluating a project that costs $800,000, 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 95,000 units per year. Price per unit is $37, variable cost per unit is $22, and the fixed costs are $880,000 per year. The tax rate is 35%, and we require a return of 15% on this project. a. Calculate the accounting break-even point. b. Calculate...
We are evaluating a project that costs $896,000, has 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 100,000 units per year. Price per unit is $38, variable cost per unit is $25, and fixed costs are $900,000 per year. The tax rate is 35%, and we require a 15% return on this project. Calculate the accounting break-even point. What is the degree of...
We are evaluating a project that costs $898,000, 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 88,000 units per year. Price per unit is $66, variable cost per unit is $48, and fixed costs are $782,000 per year. The tax rate is 35%, and we require a 10% return on this project. Suppose the projections given for price, quantity, variable costs,...
We are evaluating a project that costs $1,120,000, 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 64,000 units per year. Price per unit is $50, variable cost per unit is $25, and fixed costs are $620,000 per year. The tax rate is 35 percent, and we require a return of 12 percent on this project. 1.Calculate the accounting break-even point. 2. What...
We are evaluating a project that costs $924,000, 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 75,000 units per year. Price per unit is $46, variable cost per unit is $31, and fixed costs are $825,000 per year. The tax rate is 35 percent, and we require a 15 percent return on this project. Suppose the projections given for price, quantity, variable...
We are evaluating a project that costs $932,000, has a 12-year life, and has no salvage value. Assume depreciation is straight-line to zero over the life of the project. Sales are projected at 75,000 units per year, the price per unit is $39, variable cost per unit is $26, and fixed costs are $778,900 per year. The tax rate is 35 percent and we require a return of 13.5 percent on this project. Suppose the projections given for price, quantity,...