What is the amount of the fixed cost per unit

Assignment Help Financial Management
Reference no: EM131334561

Adept NV is analyzing a proposed project. The company expects to sell 2,500 units, give or take 10%. The expected variable cost per unit is €8 and the expected fixed costs are €12,500. Cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense is €4,000. The sale price is estimated at €16 a unit, give or take 2%. The company bases its sensitivity analysis on the expected case scenario. What is the amount of the fixed cost per unit under the pessimistic case scenario?

Reference no: EM131334561

Questions Cloud

Design a differential op-amp circuit with resistor tolerance : Design a Differential Op-Amp circuit with 5% resistor tolerances for R1, R2, R3 and R4 in Multisim. Run the simulation to measure the output voltage of the amplifier.
What factors influence the demand for product : Pick a product or service you use in your everyday life and describe the market for this product. For this paper we will use the UBER driving service. Please make sure to address the following questions: 1. What factors influence the demand for ..
What is the expected rate of return on a portfolio : What is the expected rate of return on a portfolio Which consists of $9,000 invested in an S&P 500 Index fund, $32,500 in a technology fund, and $8,500 in Treasury Bills. The expected rate of return is 11% on the S&P Index fund, 14% on the technology..
Federal reserve conducts monetary policy : Monetarists disapprove of how the Federal Reserve conducts monetary policy. What is it about the Fed's policy process that bothers them? Discuss their criticisms.
What is the amount of the fixed cost per unit : Adept NV is analyzing a proposed project. The company expects to sell 2,500 units, give or take 10%. The expected variable cost per unit is €8 and the expected fixed costs are €12,500. The sale price is estimated at €16 a unit, give or take 2%. The c..
How much does melissa have to invest in a fund today : How much does Melissa have to invest in a fund today if the fund earns the following interest rate?- 6 percent per year with annual compounding.
Draw the state diagram for the convolutional code : Draw the state diagram for the convolutional code generated by the encoder shown in Figure P8.19, and thus determine whether the code is catastrophic. Also, give an example of a rate 1/2, K = 4, convolutional encoder that exhibits catastrophic err..
Decrease in the quantity of solar panel installers : Which of the following scenarios would result in an increase in the wage rate of solar panel installers and a decrease in the quantity of solar panel installers employed in Billy's town?
Write a brief history of toshiba : ACCT19066 - Accounting Systems and Assurance Assessment: Internal Control and information quality. Write a brief history of Toshiba. Investigate and explain the internal control issues leading to misleading information of Toshiba's earnings

Reviews

Write a Review

Financial Management Questions & Answers

  Stock returns have covariance with the market portfolio

Neon Corporation’s stock returns have a covariance with the market portfolio of .0375. The standard deviation of the returns on the market portfolio is 20 percent, and the expected market risk premium is 9.1 percent. The expected unlevered cash flows..

  What is the amount of the collection float as of the end

As of this morning, your firm had a ledger balance of $775 with no outstanding deposits or checks. Today, your firm deposited six checks in the amount of $79 each and wrote a check in the amount of $330. What is the amount of the collection float as ..

  Capital expenditure or operating expenditure

If Halley Industries reimburses employees who earn master's degrees and who agree to remain with the firm for an additional 4 years, should the expense of the tuition reimbursement be categorized as a capital expenditure or an operating expenditure?

  Determine additional cash management techniques

What are some ways in which a firm can improve its cash position? What are some ways that a firm can harm its cash position? Conduct your own research to determine additional cash management techniques.

  Elaborate on how each factor can affect the risk to the mnc

Identify common financial factors for an MNC to consider when assessing country risk. Briefly elaborate on how each factor can affect the risk to the MNC.

  The real risk-free rate of interest

The real risk-free rate of interest is 3%. Inflation is expected to be 2% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-yr and 3-yr US Treasury bonds? (Hint: for US Treasury bonds, DRP..

  Calculate the present value of these cash flows

Suppose that a firm's recent earnings per share and dividend per share are $3.15 and $2.60, respectively. Both are expected to grow at 6 percent. However, the firm's current P/E ration of 27 seems high for this growth rate. The P/E ratio is expected ..

  Common equity between common stock and retained earnings

Forecasted financial statements, as discussed in the text, are used primarily as a part of the managerial compensation program, where management’s historical performance is evaluated. Perhaps the most important step when developing forecasted financi..

  The covariance between the two stocks

Suppose you invest $7,000 in Stock A and $3,000 in Stock B. The variance of Stock A is 50 percent, the variance of Stock B is also 50 percent, and the covariance between the two stocks is 0 percent. What is the variance of your portfolio in percent?

  Determine payments for monthly if interest is accrued

A fully amortizing mortgage loan is made for $100,000 at 6 percent interest for 30 years. Determine payments for Monthly, Quarterly, Annually and Weekly if interest is accured.

  What is the annual operating cash flow of the project

Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $3,300 and sell its old washer for $900. The new washer will last for 6 years and save $700 a year in expenses. If the firm uses straight..

  How much interest will you have earned after five years

Bank A pays 5% simple interest on its savings account balances while Bank B pays 4% interest compounded semi-annually. If you decide to save $10,000 in each bank, how much interest will you have earned after five years from each bank?

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