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Variable - Forecast or Assum-tion Sales Growth Rate Ex-ected Value Critical Value 6% Percentae Chan-e Gross Profit Marin Operating Expenses 31% 11%...

 Analyze the breakeven analysis (see picture attached) Please identify two value drivers that are more critical in determining whether to accept or reject the project. Explain.Screen Shot 2018-05-12 at 6.12.37 AM.png

Screen Shot 2018-05-12 at 6.12.37 AM.png

Variable - Forecast or
Assum-tion Sales Growth Rate Ex-ected Value Critical Value
6% Percentae Chan-e Gross Profit Marin
Operating Expenses 31%
11% Tax Rate
Net working capital/ Sales 40%
33% Base- ear Sales 923,171 Critical value for each variable is the value of that variable, holding all other variables equal to their expected value, that would result in a zero NPV.

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According to the table above, there are two types of value drivers, these are critical and expected values.When looking at... View the full answer

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