What would be breakeven point for project to be viable

Assignment Help Financial Management

Reference no: EM131359058

ABC international is considering purchasing for $50 000 a machine which will produce 100 000 units of a product per annum for three years. These products will be sold for $20 each and unit variable costs are expected to be $15. Incremental fixed costs will be $200 000 per annum. Required rate of return 12% p.a.

What would be breakeven point for project to be viable?

Reference no: EM131359058

Questions Cloud

What is the amount of each coupon payment : Camulus issued a bond has a par value of $1,000, a current yield of 5.913 percent, monthly interest payments, and 19 years to maturity. The bond quote is 104.297. What is the amount of each coupon payment?

What is the current value : What is the current value of a $1,000 bond with a 8% annual coupon rate (paid annually) that matures in 9 years if the appropriate discount rate is 5%?

Pay for the entire share capital : Bs management estimate that if they were to acquire A they could save 100 000 $ annually after tax on administrative costs in running the new joint company. Additionally, they estimate that the P/E ratio of the new company would be 18. Corporate tax ..

Deviated to position yourself favorably for job : In many resume, there are areas in which some 'embellishing' takes place. There's no right or wrong answers to this question, which is what makes it so interesting. Explain where the line is for you individually on the embellishment of qualifications..

What would be breakeven point for project to be viable : ABC international is considering purchasing for $50 000 a machine which will produce 100 000 units of a product per annum for three years. These products will be sold for $20 each and unit variable costs are expected to be $15. Incremental fixed cost..

Marketing environment surrounding green initiatives : The Cutco case deals with the marketing environment surrounding green initiatives and the skills marketers need in today's changing workplace. You will assume the role of a new marketing manager at a local light bulb manufacturing company. Develop a ..

Charges included failing to signal-recklessness : Charges included failing to signal, recklessness, and going too fast for conditions. Charges included that he did not signal, driving recklessly, and going too fast for conditions. Charges included failing to signal, driving recklessly, and he drove ..

Impact of changes in socio-demographics on the costs : Explain the importance of financial information in healthcare organizations. Analyze the impact of changes in socio-demographics on the costs of healthcare in the United States. How have changes in socio-demographics, over the past 20 years, impacted..

Higher net benefits or higher ratio is better : Do you also have the answers for the quizzes and tests that go along with my textbook? Why do fixed-income instruments change their price when there are changes in interest rates? Higher net benefits or higher ratio is better? why?

User Account

All Pages