Accounting break-even quantity-cash break-even quantity

Assignment Help Financial Management
Reference no: EM131060926

Consider a project with the following data: accounting break-even quantity = 11,000 units; cash break-even quantity = 10,000 units; life = six years; fixed costs = $180,000; variable costs = $66 per unit; required return = 12 percent. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131060926

Questions Cloud

Calculate the firm aftertax cash outflows for the first year : Suppose your company needs to raise $35.4 million and you want to issue 24-year bonds for this purpose. Assume the required return on your bond issue will be 7.9 percent, and you’re evaluating two issue alternatives: a 7.9 percent semiannual coupon b..
Officials in developing countries : Do you think government officials in developing countries such as Russia, China, and India welcome McDonald's? Do consumers in these countries welcome McDonald's? Why or why not?
Initial fixed asset investment-zero salvage value : Consider a four-year project with the following information: initial fixed asset investment = $470,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $30; variable costs = $20;
Perspective of innovation in a global environment : Throughout the course, you have been building toward the achievement of the following competencies: Analyze contemporary leadership practices from the perspective of innovation in a global environment.
Accounting break-even quantity-cash break-even quantity : Consider a project with the following data: accounting break-even quantity = 11,000 units; cash break-even quantity = 10,000 units; life = six years; fixed costs = $180,000; variable costs = $66 per unit; required return = 12 percent. Ignoring the ef..
Outstanding bond issue has a coupon rate : General Matter’s outstanding bond issue has a coupon rate of 8.8%, and it sells at a yield to maturity of 8.00%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face..
High-level planning during project initiation : Your CEO has asked you to do some high-level planning during your project initiation. What are some of the things that the project manager should provide to support this request? Do you consider this a wise request considering you are just initiat..
Capital gains versus income : Consider four different stocks, all of which have a required return of 20 percent and a most recent dividend of $4.00 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, ..
Determine the smallest weight w for which equilibrium : the largest weight W that can be raised if pipe B is slowly rotated counterclockwise while pipes A and C remain fixed

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the effective annual rate

Calculate the effective annual rate on each of the following loans: a. A $ 5,000 loan for two years, 10 percent simple annual interest, with principal repayment at the end of the second year b. A $ 5,000 loan for two years, 10 percent add on interest..

  1what factors affect a firms degree of transaction exposure

1.what factors affect a firms degree of transaction exposure in a particular currency? for each factor explain the

  What will be the effect on cash flows of this sale

Suppose you sell a fixed asset for $91,000 when it's book value is $112,000. If your company's marginal tax rate is 35%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

  Set up an amortization schedule for the first four months

Consider a $ 15,000 loan with interest at 12 percent compounded monthly and 24 monthly payments. How much will the loan payment be? Set up an amortization schedule for the first four months, indicating the amount and timing of principal and interest ..

  Differentiation based competitive advantage

Which of the following set of actions are unlikely to help a company achieve a differentiation based competitive advantage over some/many of its camera rivals when it comes to assembling and marketing multi-featured camera?

  Preferred stock-common stock and debt

Information on Marshall Power Co., is shown below. Assume the company’s tax rate is 35 percent. Debt: 8,500 7.2 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 118 percent of par; the bonds make semiannual paymen..

  Index understates the investors actual realized return

A US$ corporate bond can never have a yield lower than a US government bond with the same maturity. If interest rates rise a 10-year zero coupon bond would fall by about half as much as a 5-year zero coupon bond. The capital appreciation on the Nikke..

  Calculate profitability ratios for two companies

The relationship between financial leverage and profitability Pelican Paper, Inc., and Timberland Forest, Inc., are rivals in the manufacture of craft papers. Calculate the following debt and coverage ratios for the two companies. Discuss their finan..

  Company executives responsible for corporate crimes

On Sept. 9, 2015, the Justice Department announced it will “will try harder to hold company executives responsible for corporate crimes.” The Justice Department had followed a policy of prosecuting companies - instead of individuals within a company...

  What is the current market value of the stock

Test Sales, Inc. (TSI) just paid a common stock dividend of $2.50 per share. Its sales are expected to grow at a rate of 20% for the years 1 to 3, at 16% for years 4 and 5, and at 6% per year indefinitely thereafter. Dividend growth is expected to ma..

  Calculate the current value of pension

Peter is about to retire from a company in which he worked for 24 years. Peter participated in Defined Benefit Plan which uses Unit Credit Formula (2.4% of average of 3 highest salaries multiplied by number of years of services). The three highest sa..

  Investment portfolio-what is its expected return

An investment portfolio has a 30% chance of earning $100,000 in a year, a 40% chance of earning $50,000, a 15% chance of earning nothing and 15% chance of losing $20,000. What is its expected return?

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