Question

Consider a project to supply Detroit with 28,000 tons of machine screws annually for automobile production....

Consider a project to supply Detroit with 28,000 tons of machine screws annually for automobile production. You will need an initial $6,100,000 investment in threading equipment to get the project started; the project will last for 6 years. The accounting department estimates that annual fixed costs will be $1,475,000 and that variable costs should be $280 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 6-year project life. It also estimates a salvage value of $850,000 after dismantling costs. The marketing department estimates that the automakers will let the contract at a selling price of $398 per ton. The engineering department estimates you will need an initial net working capital investment of $590,000. You require a return of 12 percent and face a tax rate of 23 percent on this project. Calculate the accounting, cash, and financial break-even quantities. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

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
Consider a project to supply Detroit with 28,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 28,000 tons of machine screws annually for automobile production. You will need an initial $5,100,000 investment in threading equipment to get the project started; the project will last for 5 years. The accounting department estimates that annual fixed costs will be $1,225,000 and that variable costs should be $230 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 5-year project life. It also estimates a salvage value...
Consider a project to supply Detroit with 27,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 27,000 tons of machine screws annually for automobile production. You will need an initial $4,700,000 investment in threading equipment to get the project started; the project will last for 5 years. The accounting department estimates that annual fixed costs will be $1,125,000 and that variable costs should be $210 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 5-year project life. It also estimates a salvage value...
Consider a project to supply Detroit with 27,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 27,000 tons of machine screws annually for automobile production. You will need an initial $6,000,000 investment in threading equipment to get the project started; the project will last for 6 years. The accounting department estimates that annual fixed costs will be $1,450,000 and that variable costs should be $275 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 6-year project life. It also estimates a salvage value...
Consider a project to supply Detroit with 25,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 25,000 tons of machine screws annually for automobile production. You will need an initial $4,500,000 investment in threading equipment to get the project started; the project will last for 5 years. The accounting department estimates that annual fixed costs will be $1,075,000 and that variable costs should be $200 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 5-year project life. It also estimates a salvage value...
Consider a project to supply Detroit with 30,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 30,000 tons of machine screws annually for automobile production. You will need an initial $4,000,000 investment in threading equipment to get the project started; the project will last for 3 years. The accounting department estimates that annual fixed costs will be $700,000 and that variable costs should be $200 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 3-year project life. It also estimates a salvage value...
Consider a project to supply Detroit with 20,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 20,000 tons of machine screws annually for automobile production. You will need an initial $2,800,000 investment in threading equipment to get the project started; the project will last for 5 years. The accounting department estimates that annual fixed costs will be $750,000 and that variable costs should be $260 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 5-year project life. It also estimates a salvage value...
Please show work: Consider a project to supply Detroit with 27,000 tons of machine screws annually...
Please show work: Consider a project to supply Detroit with 27,000 tons of machine screws annually for automobile production. You will need an initial $5,600,000 investment in threading equipment to get the project started; the project will last for 6 years. The accounting department estimates that annual fixed costs will be $1,350,000 and that variable costs should be $255 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 6-year project life. It also estimates...
Consider a project to supply Detroit with 31,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 31,000 tons of machine screws annually for automobile production. You will need an initial $6,200,000 investment in threading equipment to get the project started; the project will last for 5 years. The accounting department estimates that annual fixed costs will be $1,500,000 and that variable costs should be $285 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 5-year project life. It also estimates a salvage value...
If we consider the effect of taxes, then the degree of operating leverage can be written...
If we consider the effect of taxes, then the degree of operating leverage can be written as: DOL = 1 + [FC × (1 – TC) – TC × D] / OCF Consider a project to supply Detroit with 30,000 tons of machine screws annually for automobile production. You will need an initial $4,000,000 investment in threading equipment to get the project started; the project will last for three years. The accounting department estimates that annual fixed costs will be...
If we consider the effect of taxes, then the degree of operating leverage can be written...
If we consider the effect of taxes, then the degree of operating leverage can be written as: DOL = 1 + [FC × (1 – TC) – TC × D] / OCF Consider a project to supply Detroit with 30,000 tons of machine screws annually for automobile production. You will need an initial $4,000,000 investment in threading equipment to get the project started; the project will last for three years. The accounting department estimates that annual fixed costs will be...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT