What is the accounting break even quantity?
Q: We are evaluating a project that costs $691,200; has an eight-year life, and has no salvage value.…
A: Sensitivity analysis determines how different values of an independent variable affect a particular…
Q: A firm is evaluating an investment in a fixed asset that costs $1,080, has a six-year life, and has…
A: Net Present Value: This is the present worth of the future cash flows calculated using the discount…
Q: Gateway Communications is considering a project with an initial fixed assets cost of $1.53 million…
A: Net present is the difference between present value of all cash inflows and initial investment. NPV…
Q: We are evaluating a project that costs $979,000, has a life of thirteen years, and has no salvage…
A: Net present value (NPV) is defined as the sum of the present values of all future cash inflows less…
Q: a. Calculate the base-case operating cash flow and NPV. Note: Do not round intermediate calculations…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
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A:
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A: Anticipating the time required to recover the original investment might be critical for…
Q: We are evaluating a project that costs $856,800, has a nine-year life, and has no salvage value.…
A: Units sold90000Selling price$56.00Initial cost$856,800.00useful life9.00Salvage value0.00Variable…
Q: Gateway Communications is considering a project with an initial fixed assets cost of $1.49 million…
A: Data given: Initial fixed assets cost=$1490,000 n= 9 years Sale of assets=$ 246,000 Savings in…
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A: Capital budgeting is the process where the feasibility of long-term asset purchase is assessed using…
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A: Net Present Value is used to evaluate the investment and financing decisions that involve cash flows…
Q: We are evaluating a project that costs $2,250,000, has a 8-year life, and has no salvage value.…
A: Sensitivity analysis:Sensitivity analysis determines how different values of an independent variable…
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A: Operating Cash flow is the amount which is earned by the investor from the project. It is the net…
Q: Tom is evaluating a project that costs $3,500,000, has a four-year life, and has no salvage value.…
A: Initial Investment = $3,500,000Useful life = 4 yearsDepreciation = Initial investment / useful life…
Q: Rock Haven has a proposed project that will generate sales of 1770 units annually at a selling price…
A: Number of units sold= 1,770Selling price= $26Variable cost per unit= $7.55Fixed cost= $14900Fixed…
Q: We are evaluating a project that costs $2,100,000, has a 7-year life, and has no salvage value.…
A: Net present value:Net Present Value (NPV) is a financial metric that evaluates the profitability of…
Q: vestment of $2.31 million. The fixed asset will be depr s three-year tax life, after which time it…
A: NP3 is the difference between the projected value of cash flow and initial investment and it must be…
Q: We are evaluating a project that costs $845,000, has an eight-year life, and has no salvage value.…
A: Initial cost$845,000.00USeful life8sales unit per year51,000Price per unit$53Variable cost$27Fixed…
Q: We are evaluating a project that costs $800,000, has a life of 8 years, and has no salvage value.…
A: Final Answers:The best-case NPV is $3,357,243.81 (Rounded to nearest cent).The worst-case NPV is…
Q: We are evaluating a project that costs $604,000, has an 8-year life, and has no salvage value.…
A: Net present value(NPV) stands as a pivotal financial metric essential for evaluating the flexibility…
Q: we are evaluating a project that costs $966,000, has a life of twelve years, and has no salvage…
A: Net Present Value (NPV)When determining an investment opportunity for a project, the Net Present…
Q: We are evaluating a project that costs $1,080,000, has a life of 10 years, and has no salvage value.…
A: An accounting break-even point is where the firm generates a sales amount such that it is just able…
Q: We are evaluating a project that costs $891,000, has a life of fifteen years, and has no salvage…
A: NPV (Net Present Value) is a financial metric used to evaluate the profitability of an investment by…
Q: We are evaluating a project that costs $1,830,000, has a 6-year life, and has no salvage value.…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Gateway Communications is considering a project with an initial fixed assets cost of $169 million…
A: NPV is one of the most popular method of valuation in capital budgeting. NPV is a method that helps…
Q: ateway Communications is considering a project with an initial fixed assets cost of $1.49 million…
A: Data given:Initial fixed assets cost=$1490,000n= 9 yearsSale of assets=$ 246,000Savings in operating…
Q: In evaluating a project that costs $957,000, has a life of 13 years, and has no salvage value.…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: We are evaluating a project that costs $853,000, has a life of 11 years, and has no salvage value.…
A: The process that analyzes and evaluates any project's feasibility and profitability is recognized as…
Q: We are evaluating a project that costs $788,400, has a nine-year life, and has no salvage value.…
A: Working notes :- Contribution per…
Q: We are evaluating a project that costs $604,000, has an 8-year life, and has no salvage value.…
A: Price and quantity are 10% less than estimated figures in the worst case and whereas, variable costs…
Q: We are evaluating a project that costs $1,100,000, has a ten-year life, and has no salvage value.…
A: Net present value is the capital budgeting metric that is used to compute and evaluate the…
Q: Gateway Communications is considering a project with an initial fixed assets cost of $1.63 million…
A: NPV Net Present Value is a capital budgeting technique used in decision making on the basis of…
Q: What is the net present value of this project?
A: Information Project: Fixed asset cost = $157,000 Annual Sales = $98,000 Variable cost = $27,400…
Q: Gateway Communications is considering a project with an initial fixed assets cost of $1.58 million…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: Gateway Communications is considering a project with an initial fixed assets cost of $1.47 million…
A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…
Q: H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: Your firm requires an average accounting return (AAR) of at least 15 percent on all fixed asset…
A: To determine whether the project can be accepted based on the accounting rate of return (AAR), let's…
Q: We are evaluating a project that costs $630,700, has a seven-year life, and has no salvage value.…
A: Net present value is the evaluation metric used in the process of capital budgeting which computes…
Q: Concose Park Department is considering a new capital investment. The cost of the machine is…
A: Net Present Value = Present Value of Cash Inflows – Present Value of Cash Outflows where, Present…
Q: Fox Co. is considering an investment that will have the following sales, variable costs, and fixed…
A: Net present value is used to evaluate the investment and financing decisions that involve cash flows…
Q: We are evaluating a project that costs $2,190,000, has a 8-year life, and has no salvage value.…
A: Project cost = $2,190,000Useful life = 8 yearsDepreciation = 2190000 / 8 = $273,750Sales = 91,200…
Q: We are evaluating a project that costs $966,000, has a life of twelve years, and has no salvage…
A: Net present Value is the value of all cash flows throughout the life of project discounted to…
Q: Gateway Communications is considering a project with an initial fixed asset cost of $2 million which…
A: ParticularsValuesInitial Fixed asset $ 20,00,000.00Life of the asset10 yearsSalvage Value $…
Q: Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 5, 700 pairs of…
A: Operating cash flow refers to the cash flow that a company generates from its business operations.…
Q: Carper Company is considering a capital investment of $400,000 in additional productive facilities.…
A: YearCash flows0 $ -4,00,000.001 $ 90,000.002 $ 90,000.003 $ 90,000.004 $ 90,000.005…
Cantor's has been busy analyzing a new project. Management has determined that the new project requires an initial investment in fixed assets of $1.8 million, which will be
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- Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,300,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $3,070,000 in annual sales, with costs of $2,090,000. Assume the tax rate is 24 percent and the required return on the project is 11 percent. What is the project's NPV? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Net present value 22,761.70We are evaluating a project that costs $844,200, has a nine-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 80,000 units per year. Price per unit is $54, variable cost per unit is $38, and fixed costs are $760,000 per year. The tax rate is 23 percent, and we require a return of 10 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±15 percent. Saved Calculate the best-case and worst-case NPV figures. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Best-case Worst-case NPVDelia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $157,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44 45 percent, 14 81 percent, and 7.41 percent, respectively. The project will have annual sales of $98,000, variable costs of $27,400, and fixed costs of $12,000. The project will also require net working capital of $2,600 that will be returned at the end of the project. The company has a tax rate of 21 percent and the project's required return is 10 percent. What is the net present value of this project? Multiple Choice $3112 $3.395 $16.360 56718 $4.645
- We are evaluating a project that costs $953,000, has a life of ten years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 134,000 units per year. Price per unit is $37, variable cost per unit is $23, and fixed costs are $957,765 per year. The tax rate is 24 percent, and we require a return of 17 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 14 percent. Calculate the best case npv and worst case npvWe are evaluating a project that costs $788,400, has a nine-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 $52, variable cost per unit is $36, and fixed costs are $750,000 per year. The tax rate is 21 percent, and we require a return of 12 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±15 percent. Calculate the best-case and worst-case NPV figures. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Best-case Worst-caseYou are evaluating a project for your company. You estimate the sales price to be $520 per unit and sales volume to be 2,200 units in year 1; 3,200 units in year 2; and 1,700 units in year 3. The project has a three-year life. Variable costs amount to $320 per unit and fixed costs are $210,000 per year. The project requires an initial investment of $335,000 in assets which will be depreciated straight-line to zero over the three-year project life. The actual market value of these assets at the end of year 3 is expected to be $52,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 10 percent. What change in NWC occurs at the end of year 1? $104,000 $139,672 $82,160 $176,800
- We are evaluating a project that costs $976,000, has a life of ten years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 144,000 units per year. Price per unit is $36, variable cost per unit is $25, and fixed costs are $984,784 per year. The tax rate is 23 percent, and we require a return of 13 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 17 percent. a. Calculate the best-case NPV. Best case b. Calculate the worst-case NPV. Worst caseWe are evaluating a project that costs $1,920,000, has a 6-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 94,500 units per year. Price per unit is $38.43, variable cost per unit is $23.60, and fixed costs are $839,000 per year. The tax rate is 23 percent and we require a return of 12 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. Calculate the best-case and worst-case NPV figures. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Best-case NPV Worst-case NPVDelia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $189,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $126,000, variable costs of $33,700, and fixed costs of $12,700. The project will also require net working capital of $3,300 that will be returned at the end of the project. The company has a tax rate of 21 percent and the project's required return is 9 percent. What is the net present value of this project? ASAP, PLEASE
- We are evaluating a project that costs $2,130,000, has a 8-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 90,600 units per year. Price per unit is $38.85, variable cost per unit is $23.95, and fixed costs are $860,000 per year. The tax rate is 25 percent, and we require a return of 11 percent on this project. a. Calculate the base-case operating cash flow and NPV. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the sensitivity of NPV to changes in the sales figure? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. c. If there is a 450-unit decrease in projected sales, how much would the NPV change? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. d. What is the sensitivity…We are evaluating a project that costs $520,000, has a life of 6 years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 73,000 units per year. Price per unit is $45, variable cost per unit is $30, and fixed costs are $840,000 per year. The tax rate is 21 percent, and we require a return of 15 percent on this project. Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b-1. Calculate the base-case cash flow and NPV. (Do not round intermediate calculations and round your NPV answer to 2 decimal places, e.g., 32.16.) b-2. What is the sensitivity of NPV to changes in the sales figure? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a. C. What is the sensitivity of OCF to changes in the variable cost figure? (A negative answer should be indicated by a minus sign. Do not…Gateway Communications is considering a project with an initial fixed assets cost of $1.55 million that will be depreciated straight-line to a zero book value over the 9-year life of the project. At the end of the project the equipment will be sold for an estimated $ 240,000. The project will not change sales but will reduce operating costs by $399,000 per year. The tax rate is 21 percent and the required return is 11.5 percent. The project will require $52,000 in net working capital, which will be recouped when the project ends. What is the project's NPV?
