# Questions and problem set

Purpose of AssignmentStudents should understand and be able to calculate the net present value and internal rate of return for corporate cash flows, determine project cash flows and a company’s sales, variable costs, fixed costs, and its breakeven point.Assignment Steps Resources: Tutorial help on Excel® and Word® functions can be found on the Microsoft® Office website. There are also additional tutorials via the web that offer support for office products. Complete the following Questions and Problems from each chapter as indicated. Show all work and analysis. Prepare in Microsoft® Excel® or Word. Ch. 9: Questions 7 & 8 (Questions and Problems section)7. Calculating IRR [LO5] A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project?8. Calculating NPV [LO1] For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent?Ch. 10: Questions 3 & 13 (Questions and Problems section)3. Calculating Projected Net Income [LO1] A proposed new investment has projected sales of \$635,000. Variable costs are 44 percent of sales, and fixed costs are \$193,000; depreciation is \$54,000. Prepare a pro forma income statement assuming a tax rate of 35 percent. What is the projected net income?13. Project Evaluation [LO1] Dog Up! Franks is looking at a new sausage system with an installed cost of \$540,000. This cost will be depreciated straight-line to zero over the project?s five-year life, at the end of which the sausage system can be scrapped for \$80,000. The sausage system will save the firm \$170,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of \$29,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project?Ch. 11: Questions 1 & 7 (Questions and Problems section)1. Calculating Costs and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is \$9.64 per unit, and the variable labor cost is \$8.63 per unit.a. What is the variable cost per unit?b. Suppose NSI incurs fixed costs of \$915,000 during a year in which total production is 215,000 units. What are the total costs for the year?c. If the selling price is \$39.99 per unit, does NSI break even on a cash basis? If depreciation is \$465,000 per year, what is the accounting break-even point?7. Calculating Break-Even [LO3] In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even.Format your assignment consistent with APA guidelines if submitting in Microsoft® Word.

Don't use plagiarized sources. Get Your Custom Essay on
Questions and problem set
Just from \$13/Page
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

### Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors: