Miller Mfg. is analyzing a proposed project. The company expects to sell 13,000 units, give or take 4 percent. The expected variable cost per unit is $6.00 and the expected fixed cost is $31,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $29,000. The tax rate is 34 percent. The sale price is estimated at $13.00 a unit, give or take 3 percent. What is the earnings before interest and taxes under the base case scenario? a. $62,000 b. $60,000 c. $45,519 d. $33,000 e. $31,000

Eton Company is analysing a proposed project. It expects to sell 150 units, give or take 4%. The expected variable cost per unit is $10 and the expected fixed cost is $400. The fixed and variable cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense and interest expense are $300 and $100 respectively. The tax rate is 10%. The sale price is estimated at $20 a unit, give or take 5%. What is the after tax cash flow under the optimistic case scenario? A. $1002.6 B. $1114.0C. $1302.6 D. $1272.6

what is the net income under the worst case scenrio?

Chadron Motors is reviewing a project with sales of 6,200 units, ±2 percent, at a sales price of $29, ±1 percent, per unit. The expected variable cost per unit is $11, ±3 percent, and the expected fixed costs are $85,578, ±1 percent. The depreciation expense is $68,000 and the tax rate is 21 percent. What is the net income under the worst-case scenario? A. $4,696 B. –$28,704 C. $15,846 D. −$39,713 E. −$38,578

The Meldrum Co. is analyzing a proposed project. The company expects to sell 3,000 units, give or take 15%. The expected variable cost per unit is $8 and the expected fixed costs are $12,500. Cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense is $4,000. The sale price is estimated at $18/unit, give or take 2%. The project requires $24,000 of fixed assets which will be worthless when the project ends in six years. Also required is $6,500 of net working capital for the life of the project. The tax rate is 34% and the required rate of return is 12%. What is the net present value of the worst-case scenario?

Appalachian Crafts is analyzing a project with expected sales of 18,900 units, ±2 percent. The expected variable cost per unit is $23 and the expected fixed costs are $52,000. Cost estimates are considered accurate within a range of ±1 percent. The depreciation expense is $18,400. The sale price is estimated at $54 a unit, ±2 percent. What is the total dollar difference between the revenue using the optimistic sale price versus the expected sale price?

LED Energy Savings is analyzing a proposed project. The company expects to sell 8,000 units, plus or minus 2 percent. The expected variable cost per unit is $11 and the expected fixed costs are $287,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $68,000. The tax rate is 32 percent. The sales price is estimated at $64 a unit, give or take 3 percent. What is the earning before interest and taxes under the BEST case scenario? A. $58,480 B. $46,920 C. $93,160 D. $69,000 (I know it's not $58,480 so if someone could include the calculation, I would appreciate it!)

A proposed project has estimated sale units of 2,500, give or take 2 percent. The expected variable cost per unit is $6.79 and the expected fixed costs are $17,500. Cost estimates are considered accurate within a plus or minus 3 percent range. The depreciation expense is $2,850. The sale price is estimated at $15.40 a unit, give or take 3 percent. The company bases its sensitivity analysis on the expected case scenario. If a sensitivity analysis is conducted using a variable cost estimate of $7, what will be the total annual variable costs? a. $20,750 Marsich Company has the following information for September: Sales Variable cost of goods sold Fixed manufacturing costs $500,000 $235,000 $80,000 Variable selling and administrative expenses $45,000 Fixed selling and administrative expenses $30,000 Determine the following for Marsich Company for the month of September. 1. Manufacturing margin 2. Contribution margin 3. Income from operations b. $16,625 c. $17,500 d. $17,850 e. $18,125

You are evaluating a product for your company. You estimate the sales price of product to be $240 per unit and sales volume to be 11,400 units in year 1; 26,400 units in year 2; and 6,400 units in year 3. The project has a 3 year life. Variable costs amount to $165 per unit and fixed costs are $214,000 per year. The project requires an initial investment of $366,000 in assets which will be depreciated straight-line to zero over the 3 year project life. The actual market value of these assets at the end of year 3 is expected to be $54,000. NWC requirements at the beginning of each year will be approximately 13% of the projected sales during the coming year. The tax rate is 21% and the required return on the project is 8%. What will the year 2 free cash flow for this project be? Multiple Choice $1,298,760 $1,644,000 $796,760 $1,420,760

You are evaluating a product for your company. You estimate the sales price of the product to be $200 per unit and sales volume to be 2,000 units in year 1; 5,000 units in year 2; and 1,000 units in year 3. The project has a three-year life. Variable costs amount to $75 per unit and fixed costs are $200,000 per year. The project requires an initial investment of $360,000 in assets that will be depreciated straight-line to zero over the three-year project life. The actual market value of these assets at the end of year 3 is expected to be $40,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 13 percent. What will the year 2 free cash flow for this project be? Multiple Choice $170,412 $192,500 $201,300 $520,950