What is the npv break-even level of sales assuming tax rate

Assignment Help Financial Econometrics
Reference no: EM13334644

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 $70. The fixed costs incurred each year for factory upkeep and administrative expenses are $215,000. The machinery costs $2.3 million and is depreciated straight-line over 10 years to a salvage value of zero.

What is the accounting break-even level of sales in terms of number of diamonds sold?

What is the NPV break-even level of sales assuming a tax rate of 40%, a 10-year project life, and a discount rate of 10%?

Reference no: EM13334644

Questions Cloud

Research the debate over activex controls : Using the Web, research the debate over ActiveX controls and analyze Microsoft's security design. Is it strong enough? What security breaches have occurred in the past regarding ActiveX controls?
Calculate weighted average cost of capital given a tax rate : The cost of financing with retained earnings is re = 12%, the cost of preferred stock financing is rPS = 7%, and the before-tax cost of debt is rd = 9%. Calculate the weighted average cost of capital (WACC) given a tax rate of 35%.
Obtain the magnitude of the magnetic flux through the loop : A solenoid with 1200 turns per meter has a diameter of 5.00 cm. A current I = 2.44 A flows in the clockwise direction (when viewed from location P) in the solenoid. Find the magnitude of the magnetic flux through the loop
Explain what is the molar concentration of the acid : A standard solution of 0.250 M KOH was used to determine the concentration of a nitric acid solution (HNO3). If 10.00 mL of KOH is needed to neutralize 35.00 mL of the acid, what is the molar concentration of the acid
What is the npv break-even level of sales assuming tax rate : Each diamond can be sold for $120. The materials cost for a standard diamond is $70. The fixed costs incurred each year for factory upkeep and administrative expenses are $215,000.
Explain a mixture containing 1.0 moles of a : If a mixture containing 1.0 moles of A, 4.0 moles of B and 6.0 moles of C is allowed to react according to the equation: 2A + 2B + 6C ? 4D + 3E
Personal flotation device : Could you determine the production costs of developing a PFD (personal flotation device)? What would be the total costs, variable costs, and fixed costs for this product? I am stuck in accurately quantifying how a pricing strategy would be determined..
Find the final speed of puck : The drawing shows a collision between two pucks on an air-hockey table. Puck A has a mass of 0.020 kg and is moving along the x axis with a velocity of +5.5 m/s. Find the final speed of puck A
What facets of emotional intelligence might employees posses : Emotional intelligence is one’s ability to detect and to manage emotional cues and information. How might emotional intelligence play a role in responding to abusive customers? What facets of emotional intelligence might employees possess who are abl..

Reviews

Write a Review

Financial Econometrics Questions & Answers

  What is the amount of scholarship hal should include

For each of the following situations, indicate how much the taxpayer is required to include in gross income: a. Steve was awarded a $5,000 scholarship to attend State Law School. The scholarship pays Steve's tuition and fees.

  Find the probability that her age will be less than 35 years

The age of a group of 50 women are approximately normally distributed with a mean of 48 years and a standard deviation of 5 years. One woman is randomly selected from the group and her age is observed.

  What are the incremental cash flows for the project

what are the incremental cash flows for the project in years 1 though 5 and how do these cash flows differ from accounting profit or earnings.

  Determine what rate should the shop report

Big Dom's Pawn Shop charges an interest rate of 27.9 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers.

  How much money will invester invest in stock y

Your goal is to create a portfolio that has an expected return of 17 percent. Stock X has an expected return of 14.8 percent and a beta of 1.35, and Stock Y has an expected return of 11.2 percent and a beta of 0.90.

  Find the amount to which 500 will grow in 5 years

find the amount to which 500 will grow in 5 years if the investment earns 12 percent compounded a) annually b) semiannually c) monthly.

  What would be giants component cost of preferred stock

Giant has preferred stock selling for 125 percent of par that pays a 10 percent annual coupon. What would be Giant's component cost of preferred stock

  What volume of procedures must group now perform

Assume that the practice must accept a 20% discount in order to stay competitive. What volume of procedures must they now perform in order to make the same profit they have been making

  How to earn a 9 percent annual return compounded monthly

If you can earn a 9 percent annual return compounded monthly, you have to save each month. If you wait 10 years before you begin your deposits, you will then have to save each month.

  Determine the transactions entered into by city of fordache

Make all necessary entries in the appropriate governmental fund general journal and the government-wide governmental activities general journal for each of the following transactions entered into by the City of Fordache.

  Determine what is the present value of the liability

Imprudential, Inc. has an unfunded pension liability of $565 million that must be paid in 15 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present.

  Determine out retained earnings of the year

suppose that your firm generate net income of $20 million this year and usually pay out 30% of its net earnings as dividends. The returns on equity is 10%. let DPR represent the payout ratio (30%).

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