What is the cash break-even quantity of a four-year project where price is $55 per unit,variable cost is $36 per unit, and fixed costs are $38,000? Multiple Choice2,200 1,850 1,925 1,800 2,000

Break even point:— It is the point of production where total cost is equal to total revenue. At this…

Answered: What is the cash break-even quantity of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

10. The current project earns $100,000 and has costs of $50,000. A ne project would earn $150,000 and have costs of $75,000. What is the differential cost of the projects? a. $25,000 b. $50,000 c. 0 d. $125,000
Problem 2: For the following data, find: (a) The profit expected if the project is finished in 26 days. (b) The maximum profit obtainable and the project duration associated with it, i.e., the optimum duration. Project Duration Minimum Direct Cost (S) 20 41,000 22 40,600 25 39,900 27 39,200 29 38,400 31 37,600 33 36,900 34 36,500 36 36,250 Bid = $48,000 Setup cost $1,000 Indirect cost = $250/day
27.
URGENT
15
I am having trouble calculating the answer to this question since I am only given the cost and PI of the project 39. If a project has a cost of $30,000 and a PI = 1.5, then: a. its cash inflows are $45,000 b. the PV of its cash inflows = $20,000 c. its IRR = 50% D. its NPV = $15,000 e. two of the above
Your team is considering three different projects. They aren't mutually exclusive, allowing to multiple projects. Each project will have an initial cash flow of +$1,000,000, followed by a series of different negative cash flows, lasting for different periods of time. If the cost of capital is 15%, which of the following projects would you accept. Project A 4-year project IRR = 12% Project B 5-year project IRR = 17% Project C 6-year project IRR = 20% Project A Project C Projects A & B Projects B & C
Consider a firm with a budget constraint of $1m and five indivisible projects available to it as in the below table. Project Initial Outlay Net Present Value Project A 350,000 280,000 Project B 200,000 260,000 Project C 600,000 500,000 Project D 200,000 120,000 Project E 280,000 270,000 Which project should be accepted? Justify your answer.
A firm has identified four projects for possible funding in the next budget cycle. The projects are independent. What is the total number of possible investment strategies (combinations) that the firm can use? (a) 4 (b) 6 (c) 10 (d) 15
The graph below represents the IRR of one of the project your company is considering. $400,000 NPV Profile $300,000 $200,000 $100,000 $0 10% 20% 30% 40% 50% 60% 70% 80% 100% -$100,000 Ceesl of Gesppilial -$200,000 -$300,000 -$400,000 1. Explain why this project has two IRRS and not only one? 2. How can you make investing decision based on the above graph? Explain in details your answer. 3. If the cost of capital is 15%, are you going to accept investing in this project? Why. 4. What will be your decision if the cost of capital is 90%?

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

What is the cash break-even quantity of a four-year project where price is $55 per unit, variable cost is $36 per unit, and fixed costs are $38,000? Multiple Choice 2,200 1,850 1,925 1,800 2,000