What is the minimum levels of ocf

Assignment Help Finance Basics
Reference no: EM133113941

The Army seeks bids on Multiple Use Digitizing Devices (MUDDs). They would like to purchase 4 units per year for 3 years. Manufacturing these units require variable costs are $10,000 per MUDD. Rent is $12,000 per year.The project requires $50,000 in equipment which you can sell for $10,000 after 3 years. You will depreciate the machine straight-line to zero over 3 years. Making MUDDs will require a $10,000 increase in NWC, which will be offset at the end of the project.Tax rate is 34%, opportunity cost of capital is 15%. What is the minimum levels of OCF to achieve financial breakeven?

Reference no: EM133113941

Questions Cloud

Financial policy supporting management decision : A financial policy supporting management's decision to liquidate assets, raise capital to initiate a share buyback program to common shareholders
Estimate the intrinsic value of a company : When a discounted cash flow (DCF) model is used to estimate the intrinsic value of a company, many decisions are made. What are two weaknesses of the DCF model?
What are the primary accounting information : Rick Thrune, Production Manager for Composite Kayaks. What are the primary accounting information needs of each manager
Estimate the price per share for interco stock : Based on the above assumptions and assuming a discount rate for the total firm operations (WACC) of 16.5%, estimate the price per share for Interco's stock.
What is the minimum levels of ocf : What is the minimum levels of OCF to achieve financial breakeven?
Exhibit unethical behavior : Examine the factors that contribute to law enforcement officers protecting peers who exhibit unethical behavior?
Compute beckett b taxable income for the year : Compute Beckett's B taxable income for the year; B uses a three-factor apportionment formula with a double-weighted sales factor
Average beta of the new stocks : A mutual fund manager has a $200,000,000 portfolio with a beta = 1.2.
Analyze how the slippery slope theory : Analyze how the slippery slope theory contributes to ethical behavior in law enforcement.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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