Question

In: Finance

Given the following forecasted data, determine the number of planes that the company must produce in...

Given the following forecasted data, determine the number of planes that the company must produce in order to break even, on both accounting basis and NPV basis: the 6-year project initial investment is $900 million, each plane sold for $15.5 million, the variable cost is $8 million each plane, the fixed cost is $150 million, the depreciation uses straight-line method, tax rate is 30% and the company’s cost of capital is 10%. Please show all work in excel. Thank you!

Solutions

Expert Solution

Please upvote if the ans is helpful. In case of doubt,do comment, Thanks.


Related Solutions

Given the following forecasted data, determine the number of planes that the company must produce in...
Given the following forecasted data, determine the number of planes that the company must produce in order to break even, on both accounting basis and NPV basis assuming 6years as life of project. The project initial investment is $900 million, each plane sold for $15.5 million, the variable cost is $8 million each plane, the fixed cost is $150 million, the depreciation uses straight-line method, tax rate is 30% and the company’s cost of capital is 10%. Please explain work...
Given the forecasted data, determine the number of planes that the company must produce in order...
Given the forecasted data, determine the number of planes that the company must produce in order to break even, on both accounting basis and NPV basis. The 10-year project initial investment is $1,000 million, each plane sold for $15 million, the variable cost is $7 million each plane, the fixed cost is $150 million, the depreciation uses straight-line method, tax rate is 40% and the company’s cost of capital is 12%. please show work in Excel. Can you also put...
Given the following data Calculate the number of units that must be sold to reach a...
Given the following data Calculate the number of units that must be sold to reach a target operating income of $300             Sales price per unit = ................... $10             Variable cost per unit = ................ $ 7             Fixed costs = ............................ $3,000 What is the total number of units that must be sold to reach a target operating income of $300? a). 100 b). 3,000 c). 1,100 d). 1,000
For the following data, determine the correct data type. 1- The number of protesters at a...
For the following data, determine the correct data type. 1- The number of protesters at a rally against a new government initiative. Qualitative Quantitative (Discrete) Quantitative (Continuous) 2- The height of buildings in a city. Qualitative Quantitative (Discrete) Quantitative (Continuous) 3- The distance from your home to school. Nominal Ordinal Interval Ratio 4- The following table displays some data about the top scoring NHL (National Hockey League) players in the 2017-2018 season, ranked by total points scored. Player Rank Age...
Given the following data relates to assets in company ABC , determine whether impairment has occurred...
Given the following data relates to assets in company ABC , determine whether impairment has occurred or not, and identify the amount to be recognized. Carrying amount Fair value less cost to sell Value in use Item 1 119,000 121,000 114,000 Item 2 237,000 207,000 205,000 Item 3 115,000 117,000 123,000 Item 4 83,000 75,000 79,000 Item 5 31,000 26,000 -         
Given the following data: Number of patients = 3,293 Number of patients who had a positive...
Given the following data: Number of patients = 3,293 Number of patients who had a positive test result and had the disease = 2,184 Number of patients who had a negative test, and did NOT have the disease = 997 Number of patients who HAD a positive test result, but did NOT have the disease = 55 Number of patients who had a negative test result, but who HAD the disease = 57 a. Create a complete and fully labelled...
Given the following data: Number of patients = 3,293 Number of patients who had a positive...
Given the following data: Number of patients = 3,293 Number of patients who had a positive test result and had the disease = 2,184 Number of patients who had a negative test, and did not have the disease = 997 Number of patients who had a positive test result, but did not have the disease = 55 Number of patients who had a negative test result, but who had the disease = 57 Create a complete and fully labelled 2x2...
8. Given the following data: Number of patients = 3,293 Number of patients who had a...
8. Given the following data: Number of patients = 3,293 Number of patients who had a positive test result and had the disease = 2,184 Number of patients who had a negative test, and did not have the disease = 997 Number of patients who had a positive test result, but did not have the disease = 55 Number of patients who had a negative test result, but who had the disease = 57 a. Create a complete and fully...
A statistics teacher collected the following data to determine if the number of hours a student...
A statistics teacher collected the following data to determine if the number of hours a student studied during the semester could be used to predict the final grade for the course. The default level of significance is .05 in excel. Use the default level of significance. Student Hours Studying Final Grade 1 42 92 2 58 95 3 32 81 4 39 78 5 37 75 6 51 88 7 49 85 8 45 85 1.  Is β1 statistically significant? State...
You must determine the identity of a metal, M, based on the following data. If M...
You must determine the identity of a metal, M, based on the following data. If M is part of a metal sulfate, it is composed of 40.5% M, 19.9% S and 39.6% O. If it is part of a chloride, it is composed of 48.0% M and 52.0% Cl.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT