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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At an output level of 17,500 units, you have calculated that the degree of operating leverage is 3.40. The operating cash flow is $59,000 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for output levels of 18,500 units and 16,500 units? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. DOL at 18,500 units 3.40x DOL at 16,500 units 3.40X
A proposed project has fixed costs of $41,000 per year. The operating cash flow at 10,000 units is $67,000. a. Ignoring the effect of taxes, what is the degree of operating leverage? b. If units sold rise from 10,000 to 10,100, what will be the increase in operating cash flow? c.What is the new degree of operating leverage?
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 proposed project has fixed costs of $35,000 per year. The operating cash flow at 14,000 units is $60,000. a. Ignoring the effect of taxes, what is the degree of operating leverage? b. If units sold rise from 14,000 to 14,400, what will be the increase in operating cash flow? c. What is the new degree of operating leverage?
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
A proposed project has fixed costs of $88,000 per year. The operating cash flow at 11,300 units is $116,500. Ignore the effect of taxes. What is the degree of operating leverage?
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.)
You are analyzing a project and have developed the following estimates. The depreciation is $7,600 a year and the tax rate is 34 percent. What is the worst-case operating cash flow? Unit sales Sales price Variable cost Fixed costs TTT Base Case 3.100 $19 $12 $8.200 Lower Bound 2,500 $16 $10 $7.800 Upper Bound 3,400 $22 $14 $8.500 per unit O 1) -$1,311 O 2) -$641 3) $274 4) $1,206
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

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