Answer:
Accountig Break even point
BEP= FIXED COST/SALES PRICE PER UNIT-VARIABLE COST PER UNIT
BEP=32.800
DOL= CHANGE IN INCOME%/CHANGE IN SALES%
DOL=7.45
VPN
$688,359.46
CASH FLOW
1.922.500
the change in sales price increase in the sales price by 1% will result in an increase in the NPV by 12.393%
the change in sales price decrease in the sales price by 1% will result in decrease in the NPV by 12.393%
the change in fixed cost increase by 1% will result in an decrease in the FCF by -2.40%
Step-by-step explanation:
project 1,100,000 10 110000
1 1,100,000 110000 990,000
2 990,000 110000 880,000
3 880,000 110000 770,000
4 770,000 110000 660,000
5 660,000 110000 550,000
6 550,000 110000 440,000
7 440,000 110000 330,000
8 330,000 110000 220,000
9 220,000 110000 110,000
10 110,000 110000 0
Units per yer 47000
Price 50
Cost 25
Fixed cost 820000
Tax rate 35%
Return tax 10%
Accountig Break even point
BEP= FIXED COST/SALES PRICE PER UNIT-VARIABLE COST PER UNIT
BEP=32.800
What is the degree of operating leverage at the accountin g break-even point?
DOL= CHANGE IN INCOME%/CHANGE IN SALES%
DOL=7.45
EBIT %= 465.000/2.350.000=19,7%
EBIT %= 465.000/2.350.000=6,7%
CHANGE IN EBIT= 465.000/110000
CHANGE IN SALES=2.350.000/1.640.000
b-1. Calculate the base-case cash flow and NPV. (Round your NPV answer to 2 decimal places. (e.g., 32.16))
Cash flow $
NPV $
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Investement 1,100,000
Income 2350000 2350000 2350000 2350000 2350000 2350000 2350000 2350000 2350000 2350000
Cost 1175000 1175000 1175000 1175000 1175000 1175000 1175000 1175000 1175000 1175000
Fixed cost 710000 710000 710000 710000 710000 710000 710000 710000 710000 710000
TAX 35% 162750 162750 162750 162750 162750 162750 162750 162750 162750 162750
Cash 302250 302250 302250 302250 302250 302250 302250 302250 302250 302250
Discount rate
10%
VPN
$688,359.46 -1100000 302250 302250 302250 302250 302250 302250 302250 302250 302250 302250