Find the cash break-even quantity

Assignment Help Financial Management
Reference no: EM13814666

Consider the following project which costs $1,000,000 with a salvage value of $50,000 in 5 years. The project will produce a new type of running shoes which will be sold for $235 and have variable costs of $95 per pair. The company has fixed costs of $1,500,000 and a required return on projects of 12.5%. The company uses straight-line depreciation method. Find the cash break-even quantity.

a. 12071

b. 8,985

c. 13.125

d. 10714

Reference no: EM13814666

Questions Cloud

What is the npv for this project and should company accept : A corporation has $500,000 in bonds outstanding with a 5% annual coupon rate, 15 years to maturity, a $1,000 face value, and a $890 market price. The company’s 5,000 shares of common stock sell for $20 per share and have a beta of 2.5. The risk free ..
Discuss the rights of all the parties : Stanley and Garcia were both minors. Stanley bought Garcia's baseball card collection for $1,000. Stanley then sold the collection to American Collectors Company for $1,500, saying he was 22 and it was his collection. Two weeks later, Garcia decid..
How does the tps facilitate problem identification : How does the TPS facilitate problem identification and problem solving - How is jidoka implemented at Toyota Motor Manufacturing, U.S.A., Inc. ("TMM")?
Prepare a presentation about a retreat to a sacred place : Prepare a presentation about a vacation or a retreat to a sacred place in mythology, for example, the Oracle at Delphi or the Mahabodhi Temple.
Find the cash break-even quantity : Consider the following project which costs $1,000,000 with a salvage value of $50,000 in 5 years. The project will produce a new type of running shoes which will be sold for $235 and have variable costs of $95 per pair. The company has fixed costs of..
Zero correlated assets reduce risk more than negatively : In response to the same external forces, the return on one investment may increase while the return on another investment may decrease. Zero correlated assets reduce risk more than negatively correlated assets. Risk can be defined as uncertainty conc..
Describe normal healthy functioning : Describe normal healthy functioning
The biggest ethical issue revolving around incarceration : The biggest ethical issue revolving around incarceration of suspected terrorists is and According to the Federal Rules of Evidence, an expert is one who
What is the discounted payback period : A firm is evaluating a project which will cost $10,269 today and provide cash flows in years 1, 2, and 3 of $7,560, $3,286, $3,268 and, respectively. The firm’s discount rate is 8%? (Assume CFs is received at the end of each year). What is the discou..

Reviews

Write a Review

 

Financial Management Questions & Answers

  What is the variance of these returns

Five years ago, you purchased 600 shares of stock. The annual returns have been 7.2 percent, -19.4 percent, 3.8 percent, 14.2 percent, and 27.9 percent, respectively. What is the variance of these returns?

  What is the new divisor for the price-weighted index

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $36, $312, and $82, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index?

  Explain the role of the us federal reserve the federal

describe how the u.s. financial markets impact the economy businesses and individuals.explain the role of the u.s.

  Write a 700- to 1050-word paper in which you identify a

internal and external equity comparison nbspapa format advantages and disadvantages conclusion referencesinternal

  What is their yield to maturity

Quigley Inc.'s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,125. What is their yield to maturity (YTM)?

  Single currency for the world would be beneficial

International trade agreements eliminate trade barriers between countries, promote investments, infuse competitiveness, enhance productivity, create jobs, and provide consumers with a greater range of options at cheaper prices.

  Economic system lies between capitalism and communism

What type of economic system lies between capitalism and communism? Explain why it is more effective than other economic systems. Discuss the positive aspects of globalization, and contrast these with the negative aspects of globalization from the pe..

  Cash flows over the four-year life of the investment

An investment has an installed cost of $532, 800. The cash flows over the four-year life of the investment are projected to be $216,850, $233,450, $200,110, and $148, 820.

  Differentiate between the short run and long run

Let’s assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables. Describe the difference between the short run and long run in the example to bringing about more tables for t..

  Often organizations enter the marketplace with one approach

often organizations enter the marketplace with one approach and model. as the economy and demands shift and technology

  Explain the consolidated ?nancial statements of bgi

Describe the various circumstances under which May & Marty could take responsibility for the work of Dey & Dee and make no reference to Dey & Dee's examination of BGI-Western in its own report on the consolidated ?nancial statements of BGI.

  Explain how to use the security market line to select stocks

Explain how to use the Security Market Line to select stocks. Explain the significance of the risk-free rate and the market risk premium.

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