Calculate the net present value with required return

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1. Calculate break -even in dollars given the following information; sales of $40, variable costs of $15, fixed costs of $15,000, and a desired profit of $20,000. Remember, you cannot have partial units, so you need to round if the answer is decimal.

2. Calculate break-even per unit given the following information; sales per unit of $25, variable costs of $13, fixed costs of $5,000. Remember, you cannot have partial units, so you need to round if the answer is decimal.

3. Given the following information with a required return of 5%, an initial investment of $45,000 and cash flows of $9, 000, $8,000, $15000 and $20000 for year 1 through 4 respectively. Is the investment considered to be good investment?

4. Calculate the present net value with a required return of 5%, an initial investment of $45,000 and cash flows of $9,000, $8000, $15,000 and $20,000 for years 1 through 4 respectively.

5. Calculate the degree of operating leverage given the following information; sales of $25; variable costs of $13,000; and operating income of $7,000 for year 1 and sales of $40000: variable costs of $15,000 and operating income of $16000 for year 2. Your answer should be rounded to two decimal places.

6. Given the following information with a required return of 5%, an initial investment of $45,000 and cash flows of $12,000, $20,000, $10,000 and $6,000 for years 1 through 4 respectively, should the investment be done?

7. Calculate the present value given the following information: future value=$2,500; number of periods=2; interest rate 15%.

8. Calculate the future value given the following information; present value=$500; number of periods=4; interest rate 5%.

9. Calculate the net present value with required return of 8%, an initial investment of $45,000, and cash flows of $12,000, $20,000, $10,000, and $6,000 for years 1 through 4 respectively.

10. Calculate the present value of an annuity give the following information; number of periods=3, interest rate of 6% and a payment of $200.

11. Calculate the net present value with required return of 10%, an initial investment of $30,000, and 10 years of payments of $6,000 each.

Reference no: EM13878212

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