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

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Can you help me work out question 1(a) please without having to use excel? Thank you in adv
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
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Question 1 The following information for particular project: using the S.A (Sensitive Analysis) to show is the project acceptable economically or not? Sales Quantity 725 Thousands units Price for Sales Quantity $11 Cost for Quantity $9.5 Project life span (virtual) 7 years investment costs 1330Thousands $ Well-Noticed that average cost of capital (i= 9 %). The required: The test of the project net present value under the following situations: A) current situation, B) under the economic changes: Reduced selling price per unit (10%). & (15%) increase in sales & 5% decrease in the cost of the unit produced.
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
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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%?

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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