Titan Electronics plans to sell Smartphones for $15 per unit in 2023. The current variable costs are $6 per unit and fixed costs are expected to total $180,000. Determine the dollar value of sales required for Titan Electronics to break even. (Round to the nearest whole dollar.)
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- Don't Use AIAnsApple is planning to incorporate new software for the price of $600000 today in order to produce a new line of the iPod. The new iPod will be ready for sale in 1 year. If the new software will generate incremental sales of 10000units for $80 per unit, what is the NPV of the project? Use a required rate of return 7.00%, and assume that this new line is produced for one period only. $ Place your answer to the nearest dollar without any commas.
- Average Rate of Return—New Product. Can you please help?Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here.Cisco is considering the development of a wireless home networking appliance, called HomeNet. The company expects to sell 370000 units per year over the project's life at an expected wholesale price of 170. Actual production will be outsourced at a cost of 96 per unit. Additionally, the company will spend $27000 in interest expense each year towards financing the project. In year 1, the firm must increase its accounts receivable by $870000, which will return to regular levels at the end of the project. The company spent $291000 last year on software to develop the router. $106.8 million of new equipment will be purchased and then depreciated using the straight - line method over a 10-year life. They expect the market value of the equipment to depreciate at 6.6% per year. The project is expected to end in year 7. The current tax rate is 21%. Use this rate for both income tax rate and the capital gains rate. The WACC for the company is 12.6%. What is the NPV of the project?
- Cisco is considering the development of a wireless home networking appliance, called HomeNet. The company expects to sell 370000 units per year over the project's life at an expected wholesale price of 170. Actual production will be outsourced at a cost of 96 per unit. Additionally, the company will spend $27000 in interest expense each year towards financing the project. In year 1, the firm must increase its accounts receivable by $870000, which will return to regular levels at the end of the project. The company spent $291000 last year on software to develop the router. $106.8 million of new equipment will be purchased and then depreciated using the straight line method over a 10-year life. They expect the market value of the equipment to depreciate at 6.6% per year. The project is expected to end in year 7. The current tax rate is 21%. Use this rate for both income tax rate and the capital gains rate. The WACC for the company is 12.6%. What is the NPV of the project?μ-General Motors (GM) is considering introducing a new electric vehicle model. The fixed costs for production are estimated at $500 million per year. Variable costs are projected to be $30,000 per unit. GM expects to sell the vehicle for $45,000 per unit. The company's target profit for the first year is $200 million. Marketing research suggests a potential demand of 50,000 units in the first year. What is the break-even point in units for this new model? How many units does GM need to sell to reach its target profit? Netflix reported the following information in its 2023 annual report: total current assets of $9.8 billion, total assets of $52.3 billion, total current liabilities of $8.9 billion, and total liabilities of $28.5 billion. The company's net income for the year was $4.5 billion, and it paid dividends of $0.5 billion. At the beginning of the year, Netflix had total shareholders' equity of $19.8 billion. What was Netflix's total shareholders' equity at the end of 2023?…Honda is considering producing a new line of compact cars called the H-Mini. The new line will require an initial investment in equipment of $300 million and is expected to generate $600 million in revenues for each of the next 3 years (i.e., t=1, t=2, and t=3). The equipment will be depreciated straight-line to $0 over 3 years. Variable costs are estimated to be 70% of the H-Mini sales. Fixed costs will be $30 million a year. For marketing of the new car, Honda plans to use its existing provider, GSD&M. GSD&M has been under contract to provide all of Honda’s marketing services for the past 3 years at $50 million a year, and Honda & GSD&M agreed last month to another three year contract at the same price, independent of Honda’s decision regarding the new product line. The project will require an investment in inventory. At the beginning of the project (i.e., t=0), $50 million of inventory is required. Thereafter, inventory is projected to remain at $50 million each year…
- A company is considering a project which would involve purchasing amachine for $20,000 which will have no value at the end of the project.It will be used to produce a product which will have sales of 600 unitsper year for 4 years. The sales price per unit will be $50, the variablecosts per unit $20 and the incremental fixed costs of the project will be$10,000 per annum. These are all expressed in real terms and will besubject to inflation.Sales will inflate at 5% per annum, variable costs at 6% per annumand fixed costs at 7% per annum.The cost of capital is 15%Required:-Calculate NPV of the projectA small, US-based manufacturing firm is interested developing a new product to that would be produced andsold starting in 2022. Based on a preliminary market analysis, a demand forecast for the product (i.e., aprediction of the number of units sold each year) anticipates that 72,000 units can be sold the first year at aprice of $99.95 per unit. However, after that, sales are expected to decline each year according to a 95%learning curve.The required manufacturing process can produce 12 units of product per hour, up to a maximum of 72,000units per year. It would cost $4,000,000 to purchase and install the necessary manufacturing equipment,which would have a 10-year useful life. The equipment is expected to have little, if any, salvage value at theend of its useful life. While the equipment belongs to the 7-year MACRS property class, the firm willdepreciate the equipment using the most advantageous method allowed by US tax law.The manufacturing process requires the labor of a team of…Webmasters.com has developed a powerful new server that would be used for corporations’ Internet activities. It would cost $10 million at Year 0 to buy the equipment necessary to manufacture the server. The project would require net working capital at the beginning of each year in an amount equal to 10% of the year’s projected sales; for example, NWC0 10% Sales1. The servers would sell for $24,000 per unit, and Webmasters believes that variable costs would amount to $17,500 per unit. After Year 1, the sales price and variable costs will increase at the inflation rate of 3%. The company’s non-variable costs would be $1 million in Year 1 and would increase with inflation. The server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the project’s returns are expected to be highly correlated with returns on the firm’s other assets. The firm believes it could sell 1,000 units per year. The equipment would be depreciated…
