Question

the quorum company has a prospective 6 year project that requires initial fixed assets costing $963,000,...

the quorum company has a prospective 6 year project that requires initial fixed assets costing $963,000, annual fixed costs of $403,400, variable costs per unit of $123.60, a sales price per unit of $249, a discount rate of 14 percent, and a tax rate of 21 percent. the asset will be depreciated straight-line to zero over the life of the project.

explain why as a manager calculating accounting break-even sales quantity and financial break-even sales quantity are important.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
the quorum company has a prospective 6 year project that requires initial fixed assets costing $963,000,...
the quorum company has a prospective 6 year project that requires initial fixed assets costing $963,000, annual fixed costs of $403,400, variable costs per unit of $123.60, a sales price per unit of $249, a discount rate of 14 percent, and a tax rate of 21 percent. the asset will be depreciated straight-line to zero over the life of the project. compute the financial break-even sales quantity
the quorum company has a prospective 6 year project that requires initial fixed assets of $963,000,...
the quorum company has a prospective 6 year project that requires initial fixed assets of $963,000, annual fixed $403,400, variable costs $123.60 per unit, sales price of $249, discount rate 14%, tax rate 21%. asset straight line depreciated to zero over life of project. compute accounting break even sales compute financial break even quantity
The Quorum Company has a prospective 6-year project that requires initial fixed assets costing $962,000, annual...
The Quorum Company has a prospective 6-year project that requires initial fixed assets costing $962,000, annual fixed costs of $403,400, variable costs per unit of $123.60, a sales price per unit of $249, a discount rate of 14 percent, and a tax rate of 21 percent. What is the present value break-even point in units per year? A. 4,995 B. 5,852 C. 6,144 D. 5,375 E. 6,081
Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset...
Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of 2.32 million. The fixed asset will be depreciated straight line to zero over its three year tax life, after which time it will be worthless. The project estimated to generate 1.735 million in annual sales, with costs of 650,000. The tax rate is 21 percent and the required return on the project is 12 percent. What is the project's NPV?
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment...
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. If the tax rate is 21 percent, what is the OCF for this project?
Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset...
Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of $2.29 million. The fixed asset will be depreciated straight-line to zero over its three year tax life. The project is estimated to generate $1,790,000 in annual sales, with the costs of $700,000. The project requires an initial investment in net working capital of $410,000, and the fixed asset will have a market value of $420,000 at the end of the project. A.)...
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment...
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.29 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1,715,000 in annual sales, with costs of $625,000. The tax rate is 21 percent and the required return on the project is 10 percent. What is the project’s NPV? (Do not round intermediate calculations....
A suggested project requires initial fixed assets of $227,000, has a life of 4 years, and...
A suggested project requires initial fixed assets of $227,000, has a life of 4 years, and has no salvage value. Assume depreciation is straight-line to zero over the life of the project. Sales are projected at 31,000 units per year, the price per unit is $47, variable cost per unit is $23, and fixed costs are $842,900 per year. The tax rate is 23 percent and the required return is 11.5 percent. Suppose the projections given for price and quantity...
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment...
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1,660,000 in annual sales, with costs of $635,000. If the tax rate is 21 percent, what is the OCF for this project? (Do not round intermediate calculations and enter your answer in dollars, not...
Bobcat Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment...
Bobcat Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.10 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.45 million in annual sales, with costs of $495,000. If the tax rate is 21 percent, what is the OCF for this project? (Do not round intermediate calculations.) Multiple Choice $788,465.45 $842,922.10 $901,450.00 $767,150...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT