Answer quick please. Do not need full work Suppose you are considering an investment project that requires $800,000, has a six-year life, and has a salvage value of $100,000. Sales volume is projected to be 65,000 units per year.Price per unit is $63, variable cost per unit is $42, and fixedcosts are $532,000 per year. The depreciation method is a five-year MACRS. The tax rate is 35% and you expect a 20% return on this investment.Click the icon to view the MACRS depreciation schedules.Click the icon to view the interest factors for discrete compounding when i = 20% per year.(a) Determine the break-even sales volume.The break-even sales volume is units. (Round to the nearest whole number.)(b) Calculate the cash flows of the base case over six years and its NPW. Fill in the table below. (Round to the nearest dollar.)Period012345CO6Annual Net Cash Flow$$$$$$$The NPW of the project based on its base-case scenario is $ (Round to the nearest dollar.)(c) If the sales price per unit increases to $400, what is the required break-even volume?The required break-even sales volume is units. (Round to the nearest whole number.)(d) Suppose the projections given for price, sales volume, variable costs, and fixed costs are all accurate to within ± 15%. What would be the NPW figures of the best-case and worst-casescenarios?The NPW of the project based on its best-case scenario is $The NPW of the project based on its worst-case scenario is $. (Round to the nearest dollar.)(Round to the nearest dollar.) W N N1234015600997810Single PaymentCompound PresentAmountWorthFactorFactor(F/P, i, N)(P/F, i, N)1.20000.83331.44000.69441.72800.57872.07360.48232.48830.40192.98603.58324.29985.15986.19170.33490.27910.23260.19380.1615PrintCompoundAmountFactor(F/A, i, N)1.00002.20003.64005.36807.44169.929912.915916.499120.798925.9587Equal Payment SeriesSinkingFundFactor(A/F, i, N)1.00000.45450.27470.18630.13440.10070.07740.06060.04810.0385DonePresentWorthFactor(P/A, i, N)0.83331.52782.10652.58872.9906J3.32553.60463.83724.03104.1925CapitalRecoveryFactor(A/P, i, N)1.20000.65450.47470.38630.33440.30070.27740.26060.24810.2385Year n1234562N78910111213ClassDepreciationrate3200%33.3344.4514.81*7.415200%20.0032.0019.2011.52*11.525.761415161718192021* Year to switch from declining balance to straight line7200%14.2924.4917.4912.498.93*8.928.934.4610200%10.0018.0014.4011.529.227.376.55*6.556.566.553.2815150%5.009.508.557.706.936.235.90*5.905.915.905.915.905.915.905.912.9520150%3.7507.2196.6776.1775.7135.2854.8884.5224.462*4.4614.4624.4614.4624.4614.4624.4614.4624.4614.4624.4612.231

Initial investment=$800000Salvage value=$100000Fixed cost=$532000 per yearVariable cost=$42 per…

Suppose you are considering an investment project that requires $800,000, has a six-year life, and has a salvage value of $100,000. Sales volume is projected to be 65,000 units per year. Price per unit is $63, variable cost per unit is $42, and fixed costs are $532,000 per year. The depreciation method is a five-year MACRS. The tax rate is 35% and you expect a 20% return on this investment. it MODO desisti

Suppose you are considering an investment project that requires $800,000, has a six-year life, and has a salvage value of $100,000. Sales volume is projected to be 65,000 units per year. Price per unit is $63, variable cost per unit is $42, and fixed costs are $532,000 per year. The depreciation method is a five-year MACRS. The tax rate is 35% and you expect a 20% return on this investment. it MODO desisti

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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