Question: A 3-year project has a contribution margin of $15, projected fixed costs of $120,000, a projected variable cost per unit of $12, straight-line depreciation for

A 3-year project has a contribution margin of $15, projected fixed costs of $120,000, a projected variable cost per unit of $12, straight-line depreciation for 3 years of $61,000 and a projected present value break-even point of $13,601.20 units. The tax rate is 34 percent and the discount rate is 12 percent. What is the equivalent annual cost?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The two forces can be replaced by an equivalent force R acting at point B on the beam. Determine the distance b that locates B. (Hint: The combined moment of the two forces about any point is equal...

A 3-year project has a contribution margin of $16, projected fixed costs of $120,000, a projected variable cost per unit of $12, straight-line depreciation for 3 years of $50,000 (per year), and a...

A project has a contribution margin of $15, projected fixed costs of $120,000, variable costs per unit of $12 annual depreciation of $61.000, and a projected present value break-even point of...

A project has a contribution margin of $15, projected fixed costs of $120,000, variable costs per unit of $12, annual depreciation of $61,000, and a projected financial break-even point of 13,601.20...

QUESTION 19 In the Supplemental Cash Flow section, how much will "Cash paid for interest be? O AS 8,000 Canone of the listed choices C C$ 4,000 CD 36,000 CL$ 16,000 QUESTION 20 In the Supplemental...

This project has a contribution margin of $4.50, projected fixed costs of $12,500, projected variable cost per unit of $12, and a projected financial break-even point of 5,750 units. The depreciation...

1. Precise Machinery is analyzing a proposed project. The company expects to sell 3,000 units, give or take 10 percent. The expected variable cost per unit is $500 and the expected fixed costs are...

Judd's Reproductions makes reproductions of antique tables and chairs and sells them through three sales outlets. The product line consists of two styles of chairs, two styles of tables, and three...

Can I recieve help on this? I have done the first part of this and need help on the second part of it. I have included all the information needed to complete it. I'm currently struggling on it. What...

QUESTION 1 (20) 1.1 XML Limited presented the Statement of Comprehensive Income below for its most recent financial year. R Sales 743 000 402 000 341 000 Cost of sales Gross profit Operating expenses...

what do you need from me? select a price from the scenarios below and compute the contribution for each service based on your selected price. variable cost per unit comes from your variable fixed tab...

Identify conditions and organizations where self-managing work teams would not be the way to organize. Then identify conditions and organizations where self-managing work teams would be the way to...

What is the role of the accounting function in an organization?

9.61Find Z eq in the circuit of Fig. 9.68. Zeq 1-19 1+13 1+/20 j5Q

In what ways is the t distribution similar to the standard normal distribution? In what ways is the t distribution different from the standard normal distribution?

How is a t distribution similar to a standard normal distribution score? How is it different?

What is SEM? What does the value of SEM tell you about the typical magnitude of sampling error? a. As s increases, how does the size of SEM change (assuming that N stays the same)? b. As N increases,...

An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 9.6%. Bond C pays a 10% annual coupon, while...

In your own words, what does an SS tell us about a set of data? Under what circumstances will the value of SS equal 0? Can SS ever be negative?

Managerial decision modeling is used in factories but not in service operations uses quantitative models to improve managerial decisions includes the history of scientific breakthroughs used to sell...

Early in August an undergraduate college discovers that it can accommodate a few extra students. Enrolling those additional students would provide a substantial increase in revenue without increasing...

Shirley Ferguson, an insurance broker, believes that for a particular contact the probability of making a sale is 0.4. If the random variable X is defined to take the value 1 if a sale is made and 0...

4.28 A factory manager is considering whether to replace a temperamental machine. A review of past records indicates the following probability distribution for the number of breakdowns of this...