Question: Olin Transmissions Inc has the following estimates for its new
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400 per unit; variable costs = $220 per unit; fixed costs = $3.9 million; quantity = 85,000 units. Suppose the company believes all of its estimates are accurate only to within ±15 percent. What values should the company use for the four variables given here when it performs its best case scenario analysis? What about the worst-case scenario?
Answer to relevant QuestionsWe are evaluating a project that costs $924,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 75,000 units per year. ...At an output level of 73,000 units, you calculate that the degree of operating leverage is 2.90. If output rises to 78,000 units, what will the percentage change in operating cash flow be? Will the new level of operating ...Consider a project to supply Detroit with 25,000 tons of machine screws annually for automobile production. You will need an initial $3,600,000 investment in threading equipment to get the project started; the project will ...Solve for the unknown interest rate in each of thefollowing:You expect to receive $15,000 at graduation in two years. You plan on investing it at 11 percent until you have $85,000. How long will you wait from now?
Post your question