# Change any of the variables one at a time to see what

• 50

This preview shows page 30 - 35 out of 50 pages.

*change any of the variables - one at a time to see what the change is in NPV Change in NPV +/-10% in Sales +/-12.24% +/-20% in Sales +/-24.48% +/-30% in Sales +/- 36.72% +/-10% in Price +/- 24.9% +/-20% in Price +/- 49.8% +/-30% in Price +/- 74.7% +/-10% in Variable Cost +/- 10.44% +/-20% in Variable Cost +/- 20.87% +/-30% in Variable Cost +/- 31.31% 10 34,000 34,000 900 30,600,000 13,600,000 1,500,000 120,000 - 15,380,000 5,229,200 10,150,800 10 10,150,800 1,530,000 1,552,500 2,640,000 14,343,300 ous ones that
Q4: How should the annual interest expenses of \$400,000 be treated? Explain.
ded in the uld be atement. . It is not cash mpares the cash
Q5: Using the base case estimates calculate the cash, accounting, and financial breakeve
equals zero. Operating cash flow (OCF) is a me operations. If the OCF is negative, that means the project options need to be considered. This method d breakeven to average of 2,741 mowers to have mowers should go to full scale production I wo The financial BE point is a more comprehensiv to be equal to zero. This calculation shows tha breakeven. I would continue with this project.