# Compute the NPV using the information above. (SHOW ALL WORK).Compute the financial break-even quantity, i.e., the minimum number of units required to justify investment. (SHOW YOUR WORK, AND BRIEFLY DESCRIBE HOW YOU OBTAINED THE ANSWER.)

05 / 03 / 2018 Assignment

This paper circulates around the core theme of Compute the NPV using the information above. (SHOW ALL WORK).Compute the financial break-even quantity, i.e., the minimum number of units required to justify investment. (SHOW YOUR WORK, AND BRIEFLY DESCRIBE HOW YOU OBTAINED THE ANSWER.) together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 45. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.

The Flying Toaster Appliance Company is considering a new project. The equipment will cost \$30,000, have a six-year life, and be depreciated to a zero salvage value. The tax rate is 40% and the appropriate discount rate is 12%. Fixed costs for additional salaries, utilities, and miscellaneous expenses are expected to be \$20,000 per year. Variable costs for each unit are expected to be \$40, and the unit price is \$60. The expected sales quantity is 1,600 units per year.

(a) Compute the NPV using the information above. (8 points) (SHOW ALL WORK)

(b) Compute the financial break-even quantity, i.e., the minimum number of units required to justify investment. (SHOW YOUR WORK, AND BRIEFLY DESCRIBE HOW YOU OBTAINED THE ANSWER.) (2 points)

· financial break-even quantity =

· brief description of solution:

(c) Compute the best-case and worst-case NPV, assuming the variable cost, fixed cost (except for depreciation), and sales price can all fluctuate up or down by 10% (independent of each other). (SHOW YOUR WORK, AND BRIEFLY DESCRIBE HOW YOU OBTAINED THE ANSWER.) (4 points)

· best-case NPV = _______________

· worst-case NPV = _______________

· brief description of solution:

### 100% Plagiarism Free & Custom Written

International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

Company # 11483120

## STILL NOT CONVINCED?

We've produced some samples of what you can expect from our Academic Writing Service - these are created by our writers to show you the kind of high-quality work you'll receive. Take a look for yourself!

View Our Samples

## Benefits You Get

• Free Turnitin Report
• Unlimited Revisions
• Installment Plan
• 24/7 Customer Support
• Plagiarism Free Guarantee
• 100% Confidentiality
• 100% Satisfaction Guarantee
• 100% Money-Back Guarantee
• On-Time Delivery Guarantee

## Contact Us

+44 7340 9595 39
+44 20 3239 6980
[email protected]
AKOSZTEC “International House, 12 Constance Street, London, United Kingdom, E16 2DQ”

Hire Researcher
Rated 4.7/5 based on 8956 Reviews

## Supporting Pages

FLAT 25% OFF ON EVERY ORDER. Use "FLAT25" as your promo code during checkout