8. I need help with this A proposed project has fixed costs of $87,000 per year. The operating cash flow at 9,200 units is $109,300. Ignore the effect of taxes.a. What is the degree of operating leverage?Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.b. If units sold rise from 9,200 to 10,000, what will be the new operating cash flow?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.c. What is the new degree of operating leverage?Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.a. DOLb. New OCFc. New DOL

Part (c): New Degree of Operating Leverage (DOL) at 10,000 units Now, we calculate the new DOL at…

Answered: A proposed project has fixed costs of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A project has the following estimated data: Price = $46 per unit; variable costs = $31 per unit; fixed costs $19,000; required return = 15 percent; Initial investment $18,000; life = six years. a. Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the cash break-even quantity? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the financial break-even quantity? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the degree of operating leverage at the financial break-even level of output? (Do not round Intermedlate calculations and round your answer to 3 decimal places, e.g., 32.161.) Accounting break-even quantity a. b. Cash break-even quantity с. Financial break-even quantity d. DOL eg EA9F9D41-D35...jpeg 8A1B4474-4751..jpeg…
A project has the following estimated data: Price = $56 per unit; variable costs = $35 per unit; fixed costs = $18,500; required return = 8 percent; initial investment = $45,000; life = five years. a. Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the cash break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the financial break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the degree of operating leverage at the financial break-even level of output? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a. Accounting break-even quantity b. Cash break-even quantity c. Financial break-even quantity d. DOL
4. I need help with this.
Kindly help all parts or else skip pls and also explanation.
A project has fixed costs of $400 per year, depreciation charges of $400 a year, annual revenue of $3,600, and variable costs equal to two-thirds of revenues. a. If sales increase by 17%, what will be the percentage increase in pretax profits? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the degree of operating leverage of this project? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Mansukhbhai
An investment has an installed cost of $532,800. The cash flows over the four-year life of the investment are projected to be $216,850, $233,450, $200,110, and $148,820, respectively. a. If the discount rate is zero, what is the NPV? (Do not round intermediate calculations.) b. If the discount rate is infinite, what is the NPV? (A negative answer should be indicated by a minus sign.) c. At what discount rate is the NPV just equal to zero? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. NPV b. NPV c. IRR Q % l
An investment has an installed cost of $537,800. The cash flows over the four-year life of the investment are projected to be $212,750, $229,350, $196,010, and $144,720, respectively. a. If the discount rate is zero, what is the NPV? (Do not round intermediate calculations.) b. If the discount rate is infinite, what is the NPV? (A negative answer should be indicated by a minus sign.) c. At what discount rate is the NPV just equal to zero? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. NPV b. NPV c. IRR %
What is the profitability index of a project that costs $10,000 and provides cash flows of $3,900 in years 1 and 2 and $5,900 in years 3 and 4? The discount rate is 9%. (Do not round intermediate calculations. Round your answer to 4 decimal places.) × Answer is complete but not entirely correct. Profitability index 0.5548 x
What is the cash break-even point? Ignore Taxes. Price = $127 per unit; variable cost = $57 per unit; fixed cost = $105,000 per year; depreciation = $5,000 per year. Answer in handwritten formula, NOT EXCEL please

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