A company is considering an investment with the following financial information: initial investment is $800,000, project life is 5 years, salvage value is $50,000, unit price is $45/unit, unit variable cost is $18/unit, and fixed annual cost is $320,000. It is estimated that the annual sales volume will be 25,000 units. MARR is 11%. The company is concerned about the impact of sales volume on the project's rate of return. a. Please conduct a sensitivity analysis and determine the IRR if the annual sales volume changes by the following percentages from the initial estimate: -60% -40% -20% 0% +20% +40% +60%
b. Determine the percentage change that causes a reversal in the decision regarding the attractiveness of the project.

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

What is the advantage of developing criteria for assessing the effectiveness of business products and processes? a. assessment criteria are answers. b.assessment criteria are inexpensive. c.assessment criteria provide you with a list of relevant things to measure. d.assessment criteria provide you with a list of people to contact to learn more about process mentoring.

Shelby bought her dream car, a 1966 red convertible mustang, with a loan from her credit union. if shelby paid 5.1% and the bank earned a real rate of return of 3.5%, what was the inflation rate over the life of the loan?