What is the break even quantity

Assignment Help Financial Management
Reference no: EM13947214

Consider a project with the following data: accounting break-even quantity = 11,250 units; cash break-even quantity = 10,000 units; life = seven years; fixed costs = $200,000; variable costs = $64 per unit; required return = 10 percent. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

What is the Break even quantity?

Reference no: EM13947214

Questions Cloud

The portfolio weights for a portfolio : What are the portfolio weights for a portfolio that has 120 shares of Stock A that sell for $81 per share and 95 shares of Stock B that sell for $70 per share?
Computer based order entry system : Your firm is contemplating the purchase of a new $645000 computer based order entry system. the system will be depreciated straight line to 0 over the course of its 6 year life. it will be worth 58000 at that time. working capital will revert back to..
What must be the annual income from the project : Suppose that UK Motors Ltd. is considering an investment of £30 million to develop a new factory. Assume that the company’s stockholders require a 22% rate of return, that the company’s bondholders require a 9% rate of return, that the UK corporate t..
What is the break even quantity : Consider a project with the following data: accounting break-even quantity = 11,250 units; cash break-even quantity = 10,000 units; life = seven years; fixed costs = $200,000; variable costs = $64 per unit; required return = 10 percent. What is the B..
What is the IRR of the above set of cash flows : Consider the following cash flows: What is the IRR of the above set of cash flows? Your coin collection contains 57 1952 silver dollars.
Arithmetic and geometric dividend growth rate : Suppose Powers Ltd. just issued a dividend of $2.63 per share on its common stock. The company paid dividends of $2.13, $2.20, $2.37, and $2.47 per share in the last four years. If the stock currently sells for $82, what is your best estimate of the ..
Portfolio equally invested in risk-free asset and two stocks : You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.16, and the total portfolio is exactly as risky as the market, what must the beta be for the other stock in your portfolio?
What is the modified duration of this bond : Consider a 3-year zero coupon with a 5% yield to maturity. The bond price per $1000 of face value is $863.84. what is the modified duration of this bond?

Reviews

Write a Review

Financial Management Questions & Answers

  Probability range is defined

The 95% probability range is defined as the:

  What are the possible reasons for the trend

What does the calculation of each ratio represent? How does year one compare with year two, and what trend can be seen when you compare the two years? Is the trend from year one to year two positive or negative? What are the possible reasons for the ..

  Firm evaluates all of its projects by applying the irr rule

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows:

  Difference between active-passive bond portfolio management

What is the difference between active and passive bond portfolio management? Give some examples of each.(Investments)

  Invested funds to cover the cost of capital and default risk

Lyon's Furniture is advertising a "Ho! Ho! Hold the Payments for 2 Full Years!" sale. Lyon's advance factors all of its receivables to Citibank. Citibank has credit checking terminals in all of the company's stores. If Citibank wants to earn 14% on i..

  List the objectives that banks have for buying securities

List the objectives that banks have for buying securities. Explain the motive for each.

  Before taxes per year in order processing costs

Your firm is contemplating the purchase of a new $560,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $56,000 at the end of that time. You will save $280,000 before..

  Prepare journal entry for all the transactions

Sykes Company for the year ended December 13,2014. The company sold merchandise and made collections on credit terms 2/10, n/30 (assume a unit sales price of $500 in all transactions and use the gross method to record sales revenue). Prepare Journal ..

  What is the smallest expected gain over the next year

A stock has an annual return of 10.4 percent and a standard deviation of 41 percent. What is the smallest expected gain over the next year with a probability of 1 percent?

  What is the sustainable growth rate

Johnson Products earned $5.20 per share last year and paid a $2.15 per share dividend. If ROE was 16 percent, what is the sustainable growth rate?

  Prepare an estimate of the financial loss

You are the practice manager for a four-physician office. You arrive on Monday morning to find the entire office suite flooded from overhead sprinklers that malfunctioned over the weekend. Water stands ankle-deep everywhere. The practice carries valu..

  Portfolio in the coming month with probability

Your portfolio allocates equal funds to the DW Co. and Woodpecker, Inc. DW Co. stock has an annual return mean and standard deviation of 11 percent and 40 percent, respectively. What is the smallest expected loss for your portfolio in the coming mont..

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