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Assoli18 [71]
3 years ago
10

You are considering a new product launch. The project will cost $2,200,000, have a four-year life, and have no salvage value; de

preciation is straight-line to zero. Sales are projected at 270 units per year; price per unit will be $19,500, variable cost per unit will be $13,100, and fixed costs will be $660,000 per year. The required return on the project is 11 percent, and the relevant tax rate is 25 percent.
a) Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within ±10 percent. What are the upper and lower bounds for these projections? What is the base-cast, best-case, and worst-case NPV's? (Round to two decimal places)
b) Evaluate the sensitivity of your base-case NPV to changes in fixed costs. (2 decimal places)
c) What is the cash break-even level of output for this project (ignoring taxes)? (2 decimal places)
d1) What is the accounting break-even level of output for this project? (2 decimal places)
d2) What is the degree of operating leverage at the accounting break-even point? (3 decimal places)
Business
1 answer:
ankoles [38]3 years ago
3 0

Answer:

break-even level of output for this project (ignoring taxes)? (2 decimal places)

d1) What is the accounting break-even level of output for this project? (2 decimal places)

d2) What

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Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume t
mixas84 [53]

Answer: $1,852,320

Explanation:

First find out the proportion owned by Matsui.

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= 34%

The investment at the end of the year is:

= Cost of investment + Shares of net income - Share of dividend

Share of income:

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Investment at end of year:

= 1,795,200 + 81,600 - 24,480

= $1,852,320

8 0
3 years ago
Which of the following is a true​ statement? A. Adverse selection occurs after a transaction has taken place in insurance market
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Answer:

C

Explanation:

FDIC gives insurance to depositors. it promises to pay  back a certain amount of the deposits of a banks customers in the case where a bank fails. As a result of this insurance banks have a greater incentive to take on more risky projects because they know that their customers would be protected even the project goes sour and the bank fails.

Due to the services of the FDIC, less depositors have lost money when a bank fails because of the insurance services they provide to depositors.

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Which of the following statements about price wars is true?Multiple Choice a. Firms that have to deal with the possibility of pr
Nimfa-mama [501]

Answer:

d. Firms that have to deal with the possibility of price wars often have sticky prices.

Explanation:

Prices are one of the key factors for the demand and supply in any economy.

If the prices are favorable to producers, it is benefit to them, and then they supply a high quantity, whereas the demand decreases.

When a firm tends to believe to have some price wars, basically not the price the supplier wants, or the industry is against the price determined by the supplier then, the firm chooses to use stick price. That the price do not fluctuate, and gets fixed with as the firm is not ready to supply below a certain level of price.

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When policy makers have identified that there is a problem that needs fixing but cannot seem to agree on the way forward, this is known as a <em>Decision - Making Lag or simply the Decision Lag.</em> It is one of the 3 specific inside Policy Lags and can be devastating due to the uncertainty of time it might take.

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I generally bounce back from tough conversations well, but occasionally find it difficult to be resilient. Agree or disagree
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People can be tough sometimes. I generally bounce back from tough conversations well, but occasionally find it difficult to be resilient. I disagree.

<h3>What is Emotional resilience?</h3>

This is known as the ability of a person to recover quickly from any kind of bad news or traumas as a result of  illness or misfortune.

If a person can bounce back from tough conversations, it means they are strong and despite any point or issue thrown at them, they can withstand and be tough in that situation.

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