4. Given the following information, what is the financial break-even point? Initial investment = $180,000; variable...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
4. Given the following information, what is the financial break-even point? Initial investment = $180,000; variable cost = $85; fixed cost = $68,000; price = $125; life = 6 years; required return = 12%; SL depreciation; before-tax salvage value of assets = $21,000; initial net working capital investment = $17,000, and tax rate is 21%. 4. Given the following information, what is the financial break-even point? Initial investment = $180,000; variable cost = $85; fixed cost = $68,000; price = $125; life = 6 years; required return = 12%; SL depreciation; before-tax salvage value of assets = $21,000; initial net working capital investment = $17,000, and tax rate is 21%.
Expert Answer:
Answer rating: 100% (QA)
First we need to calculate the annual fixed costs Annual fixed costs Fixed cost life of the project ... View the full answer
Related Book For
Modern Portfolio Theory and Investment Analysis
ISBN: 978-1118469941
9th edition
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
Posted Date:
Students also viewed these finance questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
Find the eccentricity and the distance from the pole to the directrix of the conic. Then identify the conic and sketch its graph. Use a graphing utility to confirm your results. r = 6 2 + cos 0
-
Look tip the structure of r-talose in figure, and draw the ? anomer in its pyranose form. Identify the ring sub-stituents as axial or equatorial. - CH- D-Glyceraldehyde R/L H- - -- 2R - - CH- CH-...
-
A seismometer of mass \(30 \mathrm{~g}\) and stiffness \(40 \mathrm{~N} / \mathrm{m}\) is used to measure the vibrations of a SDOF system of mass \(60 \mathrm{~g}\) and natural frequency \(150...
-
How are the limits on using eco-efficiency indicators related to accounting?
-
Gianna Tuck is an accountant for Post Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the course of the past six months,...
-
Williams Incorporated produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers...
-
The number of accidents on a road per day is recorded for 80 days, giving the following results. It is thought that the dataset models a Poisson distribution with a rate of 2.5 accidents per day....
-
Jack Jones is a junior management accountant at HJK Ltd. Jack is given the task of compiling a cost-benefit analysis report on whether the company should purchase an expensive new machine from CVB...
-
Find all solutions of the given system of equations and check your answer graphically. ( If there is no solution, enter NO SOLUTION. 4 x - 3 y = 3 1 2 x 9 y = 9
-
Determine the de Broglie wavelength of: A . An electron with kinetic energy of 1 . 2 eV B . An alpha particle, also with kinetic energy 1 . 2 eV . ( An alpha particle is a helium nucleus with two...
-
2. A linear regression model was fitted to predict the city's per-capita gross metropolitan product (pcgmp: in dollars per person per year) on an urban economies dataset. Five variables, including...
-
The purpose of an annotated bibliography is to organize your research in a meaningful way. An annotated bibliography is a tool that helps a researcher compile sources in one location and provides the...
-
A. What are some differences between Japanese and American "visual perceptual environments," as catalogued by Miyamoto et al. (attention to differences, not perceptive behaviors). Please provide...
-
. Keep in mind that all of these terms should be defined in the context of relational databases. Attribute Cardinality Codds Rules Constraints Data integrity Entity Entity-Relationship Diagram...
-
Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a). Prepare a contribution margin income statement showing predicted net...
-
Given the security market line What must be the returns for two stocks, assuming their s are 1.2 and 0.9? R, 0.074 0.006,
-
Referring to the results of Problem 3, illustrate the arbitrage opportunities that would exist if a portfolio called D with the following characteristics were observed: D = 15 bD1-1 bD2_() 0
-
Assume you believe that the yield curve will flatten and therefore the spread between long and short rates will narrow. Furthermore, assume others do not share this belief. What action in the futures...
-
A W14 \(\times 30\) structural A992 steel column is pin connected at is ends and has a length \(L=12 \mathrm{ft}\). Determine the maximum eccentric load \(P\) that can be applied so the column does...
-
A W16 \(\times 45\) structural A992 steel column is fixed at the base and free at the top and has a length \(L=8 \mathrm{ft}\). Determine the maximum eccentric load \(P\) that can be applied so the...
-
Determine the \(\operatorname{load} P\) required to cause the steel \(\mathrm{W} 12 \times 50\) structural A-36 steel column to fail either by buckling or by yielding. The column is fixed at its...
Study smarter with the SolutionInn App