Answer:
Break even point will be 50 units
So option (D) will be correct answer
Explanation:
We have given fixed cost = $10000 per year
Variable cost is $50 per unit
Selling price = $250 per unit
We have to find the break even point for the operation
We know that break even point is equal to
Break even point 
So break even point will be equal to 50 units
So option (D) will be correct answer
Answer:
Free cash flow (FCF) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. (A)
Explanation:
Option A- This statement is true.
Option B- This is false. After-tax operating Income is calculated as Operating profit less interest less Depreciation and less tax
Option C-This is false. They will have the same operating incomes. Operating income is calculated as Sales less operating cost.
Option D- False.
Option E- False.
Answer:
C.
Explanation:
just got it right on Edge
Answer: The answer is given below
Explanation:
It should be noted that the split limits approach is used by several auto insurance policies and this simply combines per person and occurrence approach.
For every accident, three dollars amount are being applied. The first limit is simply a per person limit which is the maximum amount that one injured person will get. The second limit is simply the per occurrence limit which is the maximum amount that all the injured persons will get while the third limit applies during the claim of property damage as it is the maximum amount that will be paid for damages by an insurer to property that results from the accident.
since the split is 50/100/20, it implies that $50,000 medical coverage for every injured person, $100,000 injury coverage for all accident victims and then $20,000 for property damage.
1. Bill's insurance company will pay $20000.
2. Amount Bill will pay:
= $17,603 + $3,136 + $9,659 - $20,000
= $30,398 - $20,000
= $10,398
Answer:
21%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-400,000.
Cash flow in year 1 - 4 = $157,452.975
IRR = 21%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
