Cost-Volume-Profit (CVP) Analysis: Johnson&Johnson (JNJ)

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 worth investing in.

Submit this worksheet to the M4 Course Project Submissions Area by the due date assigned.