What are the estimated total costs under the worst case

Assignment Help Financial Management

Reference no: EM131065695

Reviewing a project with projected sales of 895 units a year, plus or minus 5 percent. The estimated sales price is $79 a unit, plus or minus 3 percent. Variable costs are estimated at $42 a unit, plus or minus 2 percent, and the fixed costs are $19,000, plus or minus $500. What are the estimated total costs under the worst case scenario?

$36,424.71

$40,258.89

$55,924.71

$34,996.29

Reference no: EM131065695

Questions Cloud

What is the target stock price in one year : Fly Away, Inc., has balance sheet equity of $5.9 million. At the same time, the income statement shows net income of $885,000. The company paid dividends of $473,475 and has 150,000 shares of stock outstanding. If the benchmark PE ratio is 23, what i..

Company is being sued for copyright infringement : At the end of the current year, a company is being sued for copyright infringement. The outcome of the lawsuit is uncertain because the lawsuit has not been settled, but the company believes it is reasonably possible that it may have to pay $1,000,00..

Balance in the estimated warranty liability account : A company sells leaf blowers for $170 each. Each unit has a three-year warranty that covers replacement of defective parts. It is estimated that 4% of all leaf blowers sold will be returned under the warranty at an average cost of $30 each. The balan..

What is the equilibrium expected return on a risky asset : Given the following information, Rf = .06, E(RM) = .12, σM = .15,where E(RM) is expected market return and σM is volatility of market return, What is the equilibrium expected return on a risky asset with a β of 1.2? With a β of .6? What is the β of a..

What are the estimated total costs under the worst case : Reviewing a project with projected sales of 895 units a year, plus or minus 5 percent. The estimated sales price is $79 a unit, plus or minus 3 percent. Variable costs are estimated at $42 a unit, plus or minus 2 percent, and the fixed costs are $19,..

Issued some new preferred stock : E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $13 in perpetuity, beginning 18 years from now. If the market requires a return of 4.3 percent on this investment, how much does a share of preferred stock cost..

What will be the dollar amount of your capital gain : The common stock of Brutus Properties will pay an annual dividend of $2.70 one year from now. The company increases the dividends by 4 percent annually. Your required return on this stock is 13 percent. Assume that you purchase the stock today and se..

Compute the equivalent annual annuity of project : Johnson Jets is considering two mutually exclusive projects. Project A has an up-front cost of $122,000 (CF0 = -122,000), and produces positive after-tax cash inflows of $30,000 a year at the end of each of the next six years. Compute the equivalent ..

What is the bonds yield to call-yield to maturity higher : Venture Corp issued 7 year 5% bonds due 2023 at par. This bond pays interest on a semi-annual basis. However, right after Venture issued the bonds, the Company missed its first earnings and at the same time, the interest rate environment changed. Ass..

User Account

All Pages