Course Project—M4 Working Ahead

Cost-Volume-Profit (CVP) Analysis

Review the Course Project Guidelines. (ATTACHED)

In the last module, you completed your estimate of cash flows for your project (Walmart).In this module, you will calculate the break-even point for the project and the expected financial returns.

• Open the Cost-Volume-Profit spreadsheet that you have been working in and calculate the break-even point.of your proposed project (Walmart) (Access the CVP template (ATTACHED) if you have not yet begun this work)
• The project must use a 6.5% cost of capital and a tax rate of 25%.
• Complete IRR (Internal Rate of Return) and NPV (Net Present Value) for the project.
• Make sure you show your Excel formulas or provide calculations so your instructor can review your work.
• You should have also considered key points of any intangible benefits or costs associated with the project and begun supplementing your pro forma statement with sufficient background information to enable a prospective investor to decide if your company is worth investing in.