Operating leverage at financial break-even level of output

Assignment Help Financial Management
Reference no: EM131081572

A project has the following data: Price/Unit=$45. Variable Cost/Unit=$36. Fixed costs=$20,000. Required return-8%. Initial investment=$100,000. Life=4 yrs. Ignoring tax effects, what are the following: acct break-even; cash break even; financial break/even. What’s the degree of operating leverage at the financial break-even level of output?

Reference no: EM131081572

Questions Cloud

Measuring the impact of organizational change : Research a recent journal article (published within the last two years) that discusses a health care organization that has recently experienced a significant change,
Calculate company after-tax weighted average cost of capital : During the past three years, Tysseland Communications Limited (TCL) has been constrained by the high cost of capital to fund for many of its investments. Recently, capital costs have been declining steadily causing the company to consider a major pro..
Do you think these costs should be included in gdp : Do you think these costs should be included in GDP?
Generate perpetual after-tax cash flows : A firm is considering a project that will generate perpetual after-tax cash flows of $19,000 per year beginning next year. The project has the same risk as the firm’s overall operations and must be financed externally. Equity flotation costs 16 perce..
Operating leverage at financial break-even level of output : A project has the following data: Price/Unit=$45. Variable Cost/Unit=$36. Fixed costs=$20,000. Required return-8%. Initial investment=$100,000. Life=4 yrs. Ignoring tax effects, what are the following: acct break-even; cash break even; financial brea..
Draw the sequence of functions : Math 104: Homework 8. Draw the sequence of functions f0(x), f1(x) and f2(x). Which of the functions are continuous at x = 0? Which of them are differentiable at x = 0
Mutual funds are such popular investment vehicles : Why do you think mutual funds are such popular investment vehicles? Why doesn’t management simply diversify its operations? Isn’t that what management is supposed to do?
Should the old riveting machine be replaced by the new one : Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase earnings before depreciation from $24,000 to $48,000 per year. The new machine will cost $82,500, and it will have an estim..
Discuss how widely-held beliefs about health and wellness : Discuss how widely-held beliefs about health and wellness in that culture may contrast or compare with beliefs in your own culture.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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