Find the accounting break even given the following information: Project Initial Outlay is $5,000 with straight...

Find the accounting break even given the following information: Project Initial Outlay is $5,000 with straight line depreciation; Project Life = 5 Years; Discount Rate = 10 %, Total Production Costs = FC + VC = $15,000 per year; Variable Costs = $2 per unit; Unit Sales = 4,000 units, Price = $5 per unit, and Ignore Taxe

Expert Solution

Answer is as follows:

jeff jeffy answered 1 year ago

Calculate the accounting break-even, the cash break-even and the financial break-even points for this project....

Calculate the accounting break-even, the cash break-even and the financial break-even points for this project. The company’s required return is 9% and the project will run for 5 years. Round your answer up to the next highest integer. Ignore any tax effects in calculating the cash break-even. Unit Variable Annual Fixed Equipment Unit Price Cost Costs Cost $ 3,020 $ 2,275 $ 9,000,000 $ 3,100.000

Consider a project with the following data: accounting break-even quantity = 24,240 units; cash break-even quantity...

Consider a project with the following data: accounting break-even quantity = 24,240 units; cash break-even quantity = 16,000 units; life = three years; fixed costs = $160,000; variable costs = $60 per unit; required return = 15 percent. Ignoring the effect of taxes, find the financial break-even quantity.

Consider a project with the following data: accounting break-even quantity = 11,175 units; cash break-even quantity...

Consider a project with the following data: accounting break-even quantity = 11,175 units; cash break-even quantity = 10,000 units; life = four years; fixed costs = $160,000; variable costs = $24 per unit; required return = 8 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.) Break-even quantity * Please post formula used*

The subject is project management Consider Cement Project with the following information, The initial investment outlay...

The subject is project management Consider Cement Project with the following information, The initial investment outlay on the project is birr 100 million which is consists of 80 million plant and machinery and the remaining 20million is on working capital. The entire outlay will be made at the beginning of the project The project will be financed with 50 million of equity capital and the reaming 50 million of debt financing  The life of the project is expected to...

Given the following free cash flows, PROJECT A PROJECT B PROJECT C Initial outlay -70,000 ...

Given the following free cash flows, PROJECT A PROJECT B PROJECT C Initial outlay -70,000 -140,000 -450,000 Cash inflows: Year 1 12,000 120,000 220,000 Year 2 18,000 30,000 220,000 Year 3 22,000 30,000 220,000 Year 4 28,000 30,000 -------- Year 5 32,000 30,000 --------- What is the IRR of project A? What is the IRR of project B? What is the IRR of project C? determine the IRR for the three independent projects A, B, and C

Find the discounted payback period for the following project. THe discount rate is 7%. Initial Outlay...

Find the discounted payback period for the following project. THe discount rate is 7%. Initial Outlay - $8,273 Year 1 - $3.774 Year 2 - $3,300 Year 3 - $5,328 Year 4 - $7,303 Round the answer to two decimal places. Show your work.

7. Calculating Break-Even [LO3] In each of the following cases, calculate the accounting break-even and the...

7. Calculating Break-Even [LO3] In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. Unit Price Unit Variable Cost Fixed Costs Depreciation $2,980 46 9 $2,135 41 3 $8,100,000 185,000 2,770 $3,100,000 183,000 1,050

From the information below, calculate the accounting break-even point. Initial investment: $2,000 Fixed costs are $2,000...

From the information below, calculate the accounting break-even point. Initial investment: $2,000 Fixed costs are $2,000 per year Variable costs: $8 per unit Depreciation: $300 per year Price: $25 per unit Discount rate: 10% Project life: 4 years Tax rate: 34%

(Break-even analysis) Project Accounting Break-Even Point (in units) Price per Unit Variable Cost per Unit Fixed...

(Break-even analysis) Project Accounting Break-Even Point (in units) Price per Unit Variable Cost per Unit Fixed Costs Depreciation A 6, 230 $52 $102,000 $26,000 B 760 $1,000 $499,000 $103,000 C 1,970 $25 $13 $5,000 D 1,970 $25 $7 $17,000 a. Calculate the missing information for each of the above projects. b. Note that Projects C and D share the same accounting break-even. If sales are above the break-even point, which project would you prefer? Explain why. c. Calculate the cash...

1. Given the following, depict fully and explain break-even in units, break-even in dollars, total revenue...

1. Given the following, depict fully and explain break-even in units, break-even in dollars, total revenue line, total cost line, fixed cost line, break-even point, etc. Fixed Cost: $120,000 Sales per Unit: $15.00 Variable cost per Unit: $3.00 Include a discussion regarding sensitivity analysis for an inelastic product.

Question