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.

compute the financial break-even sales quantity

Homework Answers

Answer #1

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

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. explain why as a manager calculating accounting break-even sales quantity and financial break-even sales quantity are important.
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 $2.29 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 $2.32 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 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...
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 $2.52 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life and is estimated to have a market value of $294584 at the end of the project. The project is estimated to generate $2146553 in annual sales, with costs of $809789. The project requires an initial investment in net working capital of $360133. If the tax rate is...