What is the financial break-even quantity

Assignment Help Financial Management
Reference no: EM131444403

A project has the following estimated data: price = $40 per unit; variable costs = $28 per unit; fixed costs = $14,500; required return = 8 percent; initial investment = $24,000; life = four years.

Ignoring the effect of taxes, what is the accounting break-even quantity?

What is the cash break-even quantity?

What is the financial break-even quantity?

What is the degree of operating leverage at the financial break-even level of output?

Reference no: EM131444403

Questions Cloud

Combined effect of changes in risk and return : A common stock has experience a simultaneous change in both risk and return. Required return has increased for 16% to 18%. Because of the change in stockholder expectations of future returns, the growth rate has also increased from 9% to12%. The divi..
Break-even quantity : Consider a project with the following data: accounting break-even quantity = 11,500 units; cash break-even quantity = 10,000 units; life = six years; fixed costs = $200,000; variable costs = $45 per unit; required return = 10 percent. Ignoring the ef..
Define whose demand is elastic and inelastic : There's a gas shortage in Gasland. You're presented with two proposals that will achieve the same level of reduction in the use of gas. Proposal A would force everybody to reduce their gas consumption by 5 percent.
What are the impacts of information technology : How is the concept of incremental analysis used in decision making? What does it mean when someone says "You get what you measured"? What are the impacts of information technology?
What is the financial break-even quantity : A project has the following estimated data: price = $40 per unit; variable costs = $28 per unit; fixed costs = $14,500; required return = 8 percent; initial investment = $24,000; life = four years. Ignoring the effect of taxes, what is the accounting..
Calculate the number of inventory days outstanding for ovhs : Ohio Valley Homecare? Suppliers, Incorporated? (OVHS) had $14 million in sales in 2009. Its cost of goods sold was $5.6 ?million, and its average inventory balance was $2.1 million. Calculate the number of inventory days outstanding for OVHS.
Z-interval and constructing a t-interval : Other than using t instead of z, what other differences are there between constructing a z-interval and constructing a t-interval?
What would be investment opportunity given the libor quote : Also, what can your commercial bank handling the transaction do, what would be their investment opportunity given the LIBOR quote, what would they receive and when.
What is the accounting break-even quantity : A project has the following estimated data: price = $40 per unit; variable costs = $28 per unit; fixed costs = $14,500; required return = 8 percent; initial investment = $24,000; life = four years. Ignoring the effect of taxes, what is the accounting..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the present value of a perpetuity

What is the present value (as of month 0) of a perpetuity that pays $200 every quarter forever? The discount rate quoted on an APR basis is 10%, and the first payment will be made at the end of the year (i.e., quarter 4).

  Can ferd make an arbitrage profit on this situation

Ferd Rumpledink at UBS now observes the data below for the USD and the CHF. He still has 10,000,000 USD or the CHF equivalent (at the current spot rate) to invest for 180 days. Can Ferd make an arbitrage profit on this situation?

  What are the monthly payments-home mortgage

What are the monthly payments (principal and interest) on a 30-year home mortgage for an $150,000 loan when interest rates are fixed at 10 percent?

  What is project internal rate of return

Project ZZQ requires an initial outlay of $500,000 and has a profitability index of 1.4. The project is expected to generate equal annual cash flows over the next ten years. The required return for this project is 16%. What is project ZZQ's internal ..

  Net present value and internal rate of return

Aunt Sally’s Foods, Inc. is a full line producer and distributor of ready to use jarred food products such as gravies and sauces. Their products are well received in the marketplace competing with such brand names as Franco-American, Ragu and Heinz. ..

  Identify financial statement by type of information

Identify the financial statement where these decision makers can find the following information about Chen, Inc. In some cases, more than one statement will report the needed data.

  When calculating the at salvage value of an asset

When calculating the AT salvage value of an asset, we need to determine whether there's a gain or a loss on the sale, and what the tax liability will be. How is all that determined?

  Maturity quoted at a discount yield

What is the price of a U.S. Treasury bill with 76 days to maturity quoted at a discount yield of 1.90 percent? Assume a $1 million face value.

  Problem regarding the nominal annual rate of interest

Suppose you deposit 35,700 today and your account will accumulate to 84,000 in 6 years. What is the nominal annual rate of interest, given quarterly compounding?

  Calculate depreciation tax shield for project in year

Your firm needs a computerized machine tool lathe which costs $47,000 and requires $11,700 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category...

  What is his monthly car payment by formula

Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. What is his monthly..

  Overall market are amplified for a given stock or investment

Beta represents the amount by which risks that affect the overall market are amplified for a given stock or investment. Beta is the expected percent change in the excess return of the security for a 1% change in the excess return of the market portfo..

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