Answer:
The answer is =16.7%
Explanation:
Earnings before interest and taxes(EBIT) = $145,000
Tax rate is 25%
Therefore, the applicable tax rate on the earnings is 100% - 25% = 75%
So the Net income is 0.75 x $145,000
Net income = $108,750
The project is financed by 100percent equity and the cost is $650,000.
ROE(Return on Equity) = net income/equity
$108,750/$650,000
=16.7%
Answer:
285,000 units
Explanation:
The computation of the cash break-even point of sales units is shown below:
Cash break-even point = (Fixed cost - depreciation) ÷ (contribution margin per unit)
where,
Fixed cost = $7,600,000
Depreciation = $7,600,000 × 0.25% = $1,900,000
And, the contribution margin per unit is $20
So, the cash break-even point of sales units is
= ($7,600,000 - $1,900,000) ÷ ($20)
= 285,000 units
Answer:
The answer to this question is A
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Answer: If the required return is 11 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16.)
Explanation:
