Cost-Volume-Profit (CVP) Analysis


In this module, you need to begin working on the Cost, Volume, Profit Analysis spreadsheet provided for the project to outline the

revenues, costs, expenses, and resulting cash flows. If you selected a manufacturing company and the project deals with a product or

change in project, you will need to consider direct and indirect costs. Detail out your costs and cash flows. Make sure these are

reasonable for the project you have selected.

In the last module, you completed your estimate of cash flows for your project. 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. (Access

the CVP template 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 w

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