Calculate the breakeven point for the device in months

Assignment Help Financial Management
Reference no: EM132071843

Eric Hashimoto has a 2010 vehicle that he plans to update with a fancy navigation system that will give him access to road maps. He can buy one for $500. The service provider charges $20 per month. Eric is a traveling salesman and he figures that the device will save him time and money. He calculates that he will save about $35 per month because he will use less gas.

Eric wants to calculate how many months it would take him to break even. His plan is to keep his current car for three more years.

a) Calculate the breakeven point for the device in months.

b) Should he buy the device?

Reference no: EM132071843

Questions Cloud

Compute the earnings before interest and taxes : Compute the earnings before interest and taxes (EBIT) for a sales level of $300,000
Why do workers try to negotiate wage employment guarantees : What are the general wage concerns that management and employee representatives bring to the negotiating table?
Write balanced equations for the combustion : Write balanced equations for the combustion of each component of the fuel gas - Determine the composition of the flue gases by volume
Monthly earnings before interest and taxes : What is the firm's monthly earnings before interest and taxes?
Calculate the breakeven point for the device in months : Calculate the breakeven point for the device in months. Should he buy the device?
Determine the reports you would create to assist management : Determine the reports you would create to assist management to evaluate and monitor the hiring process. Show a report as an example. Please add in the report.
Identify and discuss in detail two things that are a result : Social security, unemployment insurance, and workers' compensation are employee benefits required by law and are not negotiated.
What kinds of power do you use most frequently : Do you more closely resemble Person 1 or Person 2? What kinds of power do you use most frequently? Which do you use least frequently?
How much is the bond face value and current yield : How much is the bond’s face value? How much is the bond’s coupon? What is the bond’s current yield?

Reviews

Write a Review

Financial Management Questions & Answers

  What was the company net operating profit after taxes

What was the company’s net operating profit after taxes?

  Which hedging method is better the futures or the calls

Suppose the price of gasoline per gallon is currently $5. The risk manager of Universe Airlines expects the price per gallon next year to be either $7 or $4 with equal probabilities. Suppose the investors of the company are risk averse and their coll..

  Describe how your learned knowledge can be used

Management skills focus on the type of management skill applied such as collaborating, accommodating, forcing, avoiding, and compromising.

  Supplies bulletin board services to numerous universities

The Dawn H. Company supplies bulletin board services to numerous universities and colleges in canada.

  Expected return on equally weighted portfolio

What is the expected return on an equally weighted portfolio of these three stocks?

  Disadvantage of sensitivity analysis

Which one of these is a disadvantage of sensitivity analysis?

  About the markets opinion on the companys assets

A public company has a book value of $128 million. They have 20 million share outstanding with a market price of $4 per share. What inference can be drawn about the market's opinion on the company's assets?

  What constant rate is the stock expected to grow

Mitts Cosmetics Co.'s stock price is $50.30, and it recently paid a $2.25 dividend. This dividend is expected to grow by 25% for the next 3 years, then grow forever at a constant rate, g; and rs = 13%. At what constant rate is the stock expected to g..

  Investors are willing to take on more risk in all situations

Investors are willing to take on more risk in all of the following situations except. Which of the following is not part of a fiduciary duty?

  The beta of the company stock is value of stock

The beta of the company’s stock is value of AAA’s stock today is ..

  What is the dividend yield of delta company

What is the dividend yield of Delta Company? What is the capital gain yield of Delta Company?

  Firm required rate of return

If the tax rate on ordinary income is 40 percent and the firm’s required rate of return is 16 percent, should the firm purchase the system? Why?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd