Construct a worst case scenario

Assignment Help Finance Basics
Reference no: EM13292754

A new gear assembly project has these estimates: price = $1,900 per unit; variable costs = $240 per unit; fixed costs = $4.8 million; quantity produced = 95,000 units. These estimates, however, are only accurate to +/- 15%.

a. Construct a best case scenario

b. Construct a worst case scenario

 

Reference no: EM13292754

Questions Cloud

Find a function z if any one of the switches is changed : A low-voltage lighting system is to use a binary logic control for a particular light. This light lies at the intersection point of a T-shaped hallway. There is a switch for this light at each of the three endpoints of the T.
How far does the spring compress in stopping the boxcar : In a railroad yard, a 3.5×10^4 kg boxcar moving at 6.0 m/s is stopped by a spring-loaded bumper mounted at the end of the level track
Compute the average current supplied to the cars motor : A 0.954-kg toy car is powered by four AA batteries (6.00 V total) connected directly to a small DC motor. compute the average current supplied to the car\'s motor?
Explain molecules which are polar overall exhibit a property : Molecules which are polar overall exhibit a property called a dipole moment. Which of the following possesses polar bonds but has no dipole moment
Construct a worst case scenario : A new gear assembly project has these estimates: price = $1,900 per unit; variable costs = $240 per unit; fixed costs = $4.8 million; quantity produced = 95,000 units. These estimates, however, are only accurate to +/- 15%.
What strategies should management use in bargaining : What Strategies should management use in bargaining when a settlement that was unainimously recommended by the union's  bargaining team is rejected.?
What is the population : Find the mean and standard error of the x distribution and what is the population-What is the sample
What are total per unit variable costs : Variable material costs for a product are $5.43 per unit, and variable labor costs are $3.13 per unit.
Find with what speed does the man hit the ground : An 85 kg man lowers himself to the ground from a height of 5.6 m by holding onto a rope that runs over a frictionless pulley to a 75 kg sandbag

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of the future contracts and the margin money

Computation of the future contracts and the margin money and how much money will be required for margin account

  What kind of business law system would you adopt

what kind of business law system would you adopt -a civil law system or a common law system, and why? 2) What kind of business regulations would you impose?

  What will the price be in three years and in fifteen years

Patience, Inc., just paid a dividend of $3.15 per share on its stock. The dividends are expected to grow at a constant rate of 6.00 percent per year, indefinitely. Assume investors require an 11 percent return on this stock.

  What is the value of limited brands stock

What is the value of Limited Brands stock when the required return is 12.5 percent? (Round your answer to 2 decimal places.)

  Semi-annual and continuous compounding

Mr. Miser, who is 35 years old, has just inherited $11,000 and decides to use the windfall towards his retirement. He places the money in a bank which promises a return of 6 percent per year until his planned retirement in 30 years.

  What is the maximum initial investment

What is the maximum initial investment for which this project is acceptable if the pre-tax required return on debt is 8% and the required return on equity is 18%?

  Investment to make contributions to employer-s fund

If John suppose his investments would earn 8% annually, and his life expectancy is 80 years, must he invest in his own plan or must he make contributions to his employer's fund?

  What is richmond corporation total net cash flow

What is Richmond Corporation's total net cash flow from the current lockbox system available to meet payroll?

  Information about employee rights

What positive benefits could follow from a company's willingness to tolerate employee questions and criticisms about its actions and policies? How might a company best promote constructive discussion of these issues, especially as they relate to e..

  Determine cost of capital expansion

Kauai Surf Boards seeking raise capital a large group investors expand operations. Assume investors S&P 500 portfolio, a volatility 15 percent expected return 10 percent.

  What is the ebitda coverage ration

What is the EBITDA coverage ration?

  Foreign exchange risk-interest rate and exchange rates

In international cash management, managers have choice between managing only foreign exchange risk or managing foreign exchange and interest rate risk together.

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