Using Break-Even Analysis Consider a project with the following data: accounting break-even quantity = 17,000 units; cash
Question:
Using Break-Even Analysis Consider a project with the following data: accounting break-even quantity = 17,000 units; cash break-even quantity = 12,000 units; life = five years; fixed costs =
$J 30,000; variable costs = $23 per unit; required return = 16 percent. Ignoring the effect of taxes, find the financial break-even quantity.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 46% (15 reviews)
In order to calculate the financial breakeven we need the OCF of the project We can use the cash ...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Consider a project with the following cash flows: a. How many internal rates of return does this project have? b. Which of the following numbers is the project IRR: (i) -50%; (ii) -12%; (iii) -5%;...
-
Consider a project with the following cash flows: year 1, $400; year 2, $200; year 3, $600; year 4, $900; year 5, $1000; year 6, $250; year 7, $230. Assume a discount rate of 15% per year. a. Find...
-
Consider a project with the following data: Accounting break even quantity = 13,700 units; cash break-even quantity = 9,600 units; life = five years; fixed costs = $185,000; variable costs = $23 per...
-
4. Apple Inc. is a US-based technology company that plans to invest in a new research and development center in Europe and aims to raise the required funds as follows: < < - - A bond issue of...
-
An ice cube is placed on top of an overturned spherical bowl of radius r, as indicated in FIGURE 8-42. If the ice cube slides downward from rest at the top of the bowl, at what angle does it...
-
The usual retail price of an item is $100. The manufacturers cost to produce the item is $40. Retailers take a 50 percent markup and wholesalers take a 10 percent markup (markup is calculated on...
-
Which approach do you think is best for valuing a business: the DCF approach or the market multiple approach? Explain the rationale behind your answer. p7
-
Six months before its annual convention, the American Medical Association must determine how many rooms to reserve. At this time, the AMA can reserve rooms at a cost of $150 per room. The AMA...
-
Do the foIIOwing. (a) Estimate the area under the graph of f(x) = 5V; from x = 0 to x = 4 using four approximating rectangles and right endpoints. (Round your answer to four decimal places.) 15 your...
-
1) You are using a 2252 thermistor, = 3940, and you measure a resistance of 672.5 ohms. What is the temperature in C that you are measuring? 2)Suppose we include the lead resistance in the...
-
Calculating Break-Even A project has the following estimated data: price = $68 per unit; variable costs = $41 per unit; fixed costs = $8,000; required return = 15 percent; initial investment =...
-
Calculating Operating Leverage At an output level of 55,000 units, you calculate that the degree of operating leverage is 3.25. If output rises to 64,000 units, what will the percentage change in...
-
Consider the following investments. 1. $1,000 at the end of each of the next five years at 6 percent interest compounded annually. 2. $1,000 at the end of each of the next five years at 8 percent...
-
How might a good security system prevent violence in the workplace?
-
Wheeler text review: Good vs Bad dataAssignment Content - the distinction between Good vs. Bad data in the Wheeler Text file cited. What should the Operations Manager be careful to avoid?
-
What are the psychological mechanisms underlying leadership effectiveness and how do they manifest in diverse organizational cultures ?
-
What leadership skills and competencies most enhance peer leadership? Give an example where you have seen successful peer leadership, what skills and competencies stick out the most in your example?...
-
How will you describe the leadership in a global role? Explain in detail and provide examples.
-
Which of the following is not a general standard that applies to CPA client services? a. Client interest. b. Due professional care. c. Professional competence. d. All of the above are general...
-
Write the statement to store the contents of the txtAge control in an Integer variable named intAge.
-
You are to price options on a futures contract. The movements of the futures price are modeled by a binomial tree. You are given: (i) Each period is 6 months. (ii) u/d = 4/3, where u is one plus the...
-
How can FCF in the terminal year of a projects life differ from FCF in the other years?
-
Why is it important to understand that cash flow forecasts in an NPV analysis are expected values?
-
What is the difference between variable and fixed costs, and what are examples of each?
-
if the provision for bad debts decrease from 1 5 0 0 to 1 2 0 0 , then the profit in the statement of comprehensive income will increase by 3 0 0
-
1 . Brown Corp made $ 5 0 0 , 0 0 0 net sales in 2 0 2 0 . The cost of goods sold and total operating expenses incurred during the year was $ 3 5 0 , 0 0 0 . At the beginning of 2 0 2 0 , Brown had $...
-
Statement of cash flows indirect method The comparative balance sheet of Merrick Equipment Co . for December 3 1 , 2 0 Y 9 and 2 0 Y 8 , is as follows: Line Item Description December 3 1 , 2 0 Y 9...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App