Another name for nondisclosure is

We are evaluating a project that costs $786,000, has an eight-year life, and has no salvage value. Assume that depreciation is s

Nimfa-mama [501]

Answer:

base scenario:

initial outlay = $786,000

depreciation expense per year = $786,000 / 8 = $98,250

contribution margin per unit = $48 - $25 = $23

total units sold per year = 65,000

fixed costs per year = $725,000

tax rate = 22%

NCF year 0 = -$786,000

NCF year 1-8 = {[($23 x 65,000) - $98,250 - $725,000] x 0.78} + $98,250 = $622,215

NPV = $2,533,471.10

IRR = 78%

best case scenario:

initial outlay = $786,000

depreciation expense per year = $786,000 / 8 = $98,250

contribution margin per unit = ($48 x 110%) - ($25 x 90%) = $30.30

total units sold per year = 65,000 x 110% = 71,500

fixed costs per year = $725,000 x 90% = $625,500

tax rate = 22%

NCF year 0 = -$786,000

NCF year 1-8 = {[($30.30 x 71,500) - $98,250 - $625,500] x 0.78} + $98,250 = $1,223,556

NPV = $5,741,580.96

IRR = 156%

worst case scenario:

initial outlay = $786,000

depreciation expense per year = $786,000 / 8 = $98,250

contribution margin per unit = ($48 x 90%) - ($25 x 110%) = $15.70

total units sold per year = 65,000 x 90% = 58,500

fixed costs per year = $725,000 x 110% = $797,500

tax rate = 22%

NCF year 0 = -$786,000

NCF year 1-8 = {[($15.70 x 58,500) - $98,250 - $797,500] x 0.78} + $98,250 = $172,116

NPV = $132,226.16

IRR = 14%

7 0

3 years ago

For consumers, pizza and hamburgers are substitutes. a rise in the price of a pizza causes ________ in the equilibrium price of

Eddi Din [679]

If pizza and hamburgers are substitutes, then a rise in pizza prices will cause consumers to move to hamburgers instead. Assuming a fixed supply curve for hamburgers, this will push out the demand curve, which will cause the equilibrium of the two curves to move to a point of higher price and higher quantity. As such, the correct answer is b: a rise; an increase.

5 0

4 years ago

When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of

DaniilM [7]

Answer:

The firm will continue to produce in the short run.

Explanation:

Given the number of units produced by Acme Dynamite = 250 units.

The variable cost of producing the 250 units = $2000

The fixed cost = $500

The selling price = $25 per unit.

The new price after the fall in price = $10

Total revenue from the selling of 250 units = 250 × 10 = $2500

Since the revenue received is covering the variable cost and fixed cost. Thus, the firm will produce or continue to produce in the short run.

7 0

4 years ago

Selling, general, and administrative expenses were $59,000; net sales were $268,100; interest expense was $6,300; research and d

ozzi

Answer:

$35,800

Explanation:

Gross Profit = Net sales - Cost of goods sold

= $268,100 - $145,500

= $122,600

Total Operating Expense:

= S, G & A Expenses + R&D expense

= $59,000 + $27,800

= $86,800

Operating Income = Gross Profit - Total Operating Expense

= $122,600 - $86,800

= $35,800

7 0

4 years ago

Which is the fastest-growing digital marketing platform?

Elena-2011 [213]

the fastest-growing digital marketing platform would be:
e. Mobile Marketing

5 0

4 years ago