Question

A new product requires an initial investment of $5 million and will be depreciated to an expected salvage of zero over 5 years. The price of the new product is expected to be $25,000, and the variable cost per unit is $15,000. The fixed cost is $1 million. When the required return is 15.24%, what is the financial break-even point in units?

200 |
||

550 |
||

350 |
||

450 |
||

300 |
||

100 |
||

150 |
||

500 |
||

400 |
||

250 |

Answer #1

**SEE THE IMAGE. ANY DOUBTS,
FEEL FREE TO ASK. THUMBS UP PLEASE**

**TAX IS NOT GIVEN, ASSUMED =
0%**

21. A company is considering a 5-year project that opens a new
product line and requires an initial outlay of $85,000. The assumed
selling price is $97 per unit, and the variable cost is $61 per
unit. Fixed costs not including depreciation are $20,000 per year.
Assume depreciation is calculated using stright-line down to zero
salvage value. If the required rate of return is 11% per year, what
is the accounting break-even point? (Answer to the nearest whole
unit.)
22....

Oscar Inc. has a new product priced at $500 per unit. Variable
cost is $250 per unit, and fixed costs are $200,000 per year.
Quantity sold is expected to be 20,000 units per year. The new
product will require an initial investment of $14 million,
depreciation will be straight-line to zero for seven years, and
salvage at the end of seven years is expected to be $1 million.
Demand for the product is expected to be stable and to continue...

Oscar Inc. has a new product priced at $500 per unit. Variable
cost is $250 per unit, and fixed costs are $200,000 per year.
Quantity sold is expected to be 20,000 units per year. The new
product will require an initial investment of $14 million,
depreciation will be straight-line to zero for seven years, and
salvage at the end of seven years is expected to be $1 million.
Demand for the product is expected to be stable and to continue...

22.
A company is considering a 5-year project that opens a new
product line and requires an initial outlay of $80,000. The assumed
selling price is $93 per unit, and the variable cost is $66 per
unit. Fixed costs not including depreciation are $20,000 per year.
Assume depreciation is calculated using stright-line down to zero
salvage value. If the required rate of return is 10% per year, what
is the cash break-even point? (Answer to the nearest whole
unit.)

Company ABC is considering a new 5-year investment into new
production equipment that requires initial investment € 5 million.
The project is expected to generate € 1.4 million in annual sales,
with costs of € 0.6 million per year for next 5 years. ABC uses the
straight-line depreciation over the 5 years of project life (book
value assumed to be zero at the end of the project).
If the tax rate is 35%. What is the annual operating cash flow...

A project requires an initial investment in equipment and
machinery of $10 million. The equipment is expected to have a
five-year lifetime with no salvage value and will be depreciated on
a straight-line basis. The project is expected to generate revenues
of $5.1 million each year for the five years and have operating
expenses (not including depreciation) amounting to one-third of
revenues. Assume the tax rate is 40% and the cost of capital is
10%. What is the net present...

how to calculate average or mean with this number
Row Labels
Count of Code
<100
100-149
1
150-199
14
200-249
16
250-299
20
300-349
48
350-399
36
400-449
40
450-499
20
500-549
17
550-599
5
600-649
2
650-699
1
Grand Total
220

Quad Enterprises is considering a new 5-year expansion project
that requires an initial fixed asset investment of $3.888 million.
The fixed asset will be depreciated straight-line to zero over its
5-year tax life, after which time it will be worthless. The project
is estimated to generate $3,456,000 in annual sales, with costs of
$1382,400.
If the tax rate is 24 percent, what is the OCF for this
project?

Consider the following US reduced supply and demand equations
for commodity X: QdX = 400 – 2Px and QsX = - 100 + 3Px A. If this
product can now be export to a make-believe country and the
estimated reduced demand equation for this product in this
make-believe country is : Qd MB = 400 – Px
What was the new equilibrium price and quantity of this product?
Illustrate the old and new equilibria in one diagram.
a. P=$150; Q=350...

Real GDP (billions of 2009 dollars)
C
(billions of 2009 dollars)
I
(billions of 2009 dollars)
G
(billions of 2009 dollars)
100
150
150
150
200
200
150
150
300
250
150
150
400
300
150
150
500
350
150
150
600
400
150
150
700
450
150
150
800
500
150
150
900
550
150
150
Question 4: The above table gives information
for the nation of North Hampton. There are no imports to or exports
from North Hampton....

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 2 minutes ago

asked 2 minutes ago

asked 8 minutes ago

asked 12 minutes ago

asked 25 minutes ago

asked 25 minutes ago

asked 26 minutes ago

asked 27 minutes ago

asked 28 minutes ago

asked 38 minutes ago

asked 42 minutes ago