Evaluating project-Calculate the change in NPV

Assignment Help Financial Management

Reference no: EM131987095

We are evaluating a project that costs $732,000, has a six-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 55,000 units per year. Price per unit is $60, variable cost per unit is $30, and fixed costs are $640,000 per year. The tax rate is 35 percent, and we require a return of 12 percent on this project.

Calculate the change in NPV if sales were to drop by 500 units.

Reference no: EM131987095

Questions Cloud

How many times an order has to be placed to meet demand : How many times an order has to be placed to meet demand? Except for rounding, are annual ordering and carrying costs always equal at the EOQ?

What is paula basis in the real estate she received : Paula receives a liquidating distribution from Pell Corporation. What is Paula's basis in the real estate she received

How would you apply the three concepts you identified : Discuss at least 3 different concepts presented in the articles. As an IT professional, how would you apply the three concepts you identified.

Explain the issues toward passing or defeating of this bill : As a junior congress person you have been asked to help promote a bill to allow casino gambling in your state.

Evaluating project-Calculate the change in NPV : We are evaluating a project that costs $732,000, has a six-year life, and has no salvage value. Calculate the change in NPV if sales were to drop by 500 units.

Reconsider the sam club store in the previous question : Reconsider the Sam's Club store in the previous question. Assume that the supply lead time from HP is normal distributed with a mean of 2 weeks

Place of leadership skills : Example in ones personal or professional life where management skills were used in the place of leadership skills.

Design and implement a custom environment for your maze game : Design and implement a custom environment for your maze game. Write down the functionalities as detailed in Lab 7 and Lab 8 according to Behavioral Driven.

Write a research paper on topic relating to business ethics : Write a Research Paper on a topic relating to business ethics. Your paper must be 8-10 pages and double spaced, not including the title page, abstract.

User Account

All Pages