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Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $120. The materials cost for a standard diamond is $60. The fixed costs incurred each year for factory upkeep and administrative expenses are $204,000. The machinery costs $1.5 million and is depreciated straight-line over 10 years to a salvage value of zero.
a. What is the accounting break-even level of sales in terms of number of diamonds sold? (Do not round intermediate calculations.)
Break-even sales diamonds per year
b. What is the NPV break-even level of diamonds sold per year assuming a tax rate of 40%, a 10-year project life, and a discount rate of 10%? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
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List three examples of businesses that use some sort of device to electronically collect information that can be used for forecasting. The best examples would be from a workplace or area about which you have some special knowledge.
The financial department of Delphi Consolidated Industries (DCI) is just starting a two-week retreat in the Canadian wilderness. The president of DCI has been approached by an investment banker who has acquired $1,000,000 in DCI bonds in one of his d..
Charles City Hospital plans on issuing a tax-exempt bond at the bond are $1,000. If required market rates are 6 percent, the value of the bond
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