At what rate will the company break even

Assignment Help Finance Basics
Reference no: EM13280148

A firm will sell an asset in 2 years for $375,000 and it costs $285,000 to produce today. Given an opportunity rate of 16%, will the firm make a profit on this asset? At what rate will the company break even. Show step by step with answer.

Reference no: EM13280148

Questions Cloud

Define concentrations of flouride in drinking water grerater : Concentrations of flouride in drinking water grerater than 4.0 mg/L can cause mottled teeth in children. What is 4.0 mg/L expressed as molality
What is the expected return of the proposed portfolio : The expected returns for the funds are 10% for the U.S. and 8% for the British, standard deviations of 20% for the U.S. and 18% for the British, and a correlation coefficient of 0.30 between the U.S. and British equity funds.
Find the speed of the ice cube : An ice cube sliding along the ground at 3 m/s goes off a ramp pointed straight up. What is the speed of the ice cube when it comes down, just before it hits the ground
Concentration becomes smaller as the temperature is increase : Which concentration becomes smaller as the temperature is increased from 20 degrees celcius to 80 degrees celcius
At what rate will the company break even : A firm will sell an asset in 2 years for $375,000 and it costs $285,000 to produce today. Given an opportunity rate of 16%, will the firm make a profit on this asset? At what rate will the company break even. Show step by step with answer.
Should the new cash discount policy be utilized : Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy. c. Compute the following income statement. d. Should the new cash discount policy be utilized? Briefly comment.
Determine the velocity of players after collision : "Two football players are moving toward each other in a straight line. Number 56 has a mass of 116 kg and a velocity of 3 m/s, Determine the velocity (magnitude and direction) of players, after the collision
Find the rate of return on each stock : If you obtain such data on a large portfolio of stocks, like those in the S&P 500, find the rate of return on each stock, and then average those returns, this would give you an idea of stock market returns for the year in question.
Estimate the operating frequency of brand : A certain dog whistle operates at 21.6 hz while another brand X operates at an unknown frequency. estimate the operating frequency of brand X

Reviews

Write a Review

Finance Basics Questions & Answers

  Effective investment and financial planning strategies

Managers should learn how to use statistical techniques to time, and forecast, as accurately as possible, changes in basic micro and macroeconomic factors.

  What is the npv of the new production line

The tax rate is 35 percent, the opportunity cost of capital is 10 percent, and the annual rate of inflation is 4.90 percent. What is the NPV of the new production line?

  Diagnose the problems facing target micronics

Target Micronics, a Canadian microelectronics company, is facing significant operational problems in their Hong Kong office. The office carries out financial operations for the Greater China region

  How many years will your annuity last

Tonia saved $47,000 for college and wish to use $15,000 per year. If you use the money as an ordinary annuity and earn 6.15% on your investment, how many years will your annuity last? Use a calculator to determine your answer.

  How did the forward premium changes

Find the month forward rate of the euro exhibited a discount or premium this morning and how did the forward premium changes this afternoon?

  Stock valuation in efficient market for natsam corporations

Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding with a current market price of $15 per share. What is the ex-dividend price of a share in a perfect capital market?

  What is the probability that the random variable is larger

If a random variable is drawn from a normal distribution, what is the probability that the random variable is larger than 1.96 standard deviations larger than the mean?

  Financial management and time value of money

How are compounding and discounting related? Explain time value of money.

  Compute total dollar return

Purchased five hundred shares preferred stock on January 1, 2006 for 85 a share. The stock pays an annual dividend of 12 a share. On December 31 the market price is 91 each share.

  Calculating present and future value

Calculate the present value of a $100 cash flow for the following combinations of discount rates and times and also find future value of a $100 cash flow for the same combinations.

  Determine the highest return investment

Determine which of the given three investments offers you the highest rate of return on your $1,000 investment over the next 5-years.

  What is the difference between these two waccs

The CFO thinks the WACC should be based on market value weights, but the president thinks book weights are more appropriate. What is the difference between these two WACCs?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd