Effort to reduce variable costs

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What is the IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for 6 years starting one year from today?

If a project has a cost of $50,000 and a profitability index of .4, then:

How many IRRs are possible for the following set of cash flows? CF0 = -$1,000, C1 = $500, C2 = -$300, C3 = $1,000, C4 = $200.

Evaluate the following project using an IRR criterion, based on an opportunity cost of 10%: C0 = -$6,000, C1 = $3,300, C2 = $3,300.

A firm is considering a project with the following cash flows: Time 0 = +$20,000, Years 1-5 = -$4,500. Should the project be accepted if the cost of capital is 10%?

A project is expected to increase inventory by $17,000, increase accounts payable by $10,000, and decrease accounts receivable by $1,000. What is the project's cash flow from net working capital at time zero?

For an all-equity firm, adding depreciation expense to net profit equals:

A firm has fixed costs of $1.2 million and depreciation of $1 million. At a sales level of $3.6 million, the variable costs of $2.304 million. What is the accounting break-even level of sales?

Fixed costs including depreciation have increased at Leverage Inc., from $4 million to $5.3 million in an effort to reduce variable costs.

What must the new variable cost percentage of sales be to break even from an accounting perspective at $20 million?

Reference no: EM131175228

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