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Lapatulllka [165]
3 years ago
9

Assume that Flowers is contemplating (thinking about) whether to invest in a new line of products, perhaps adding a new kind of

frozen rolls. It anticipates the income statement for the new product line will look like the following in the first year of operation.Revenues $10,000,000Variable costs $3,500,000Other costs $8,000,000How much revenues would the firm need in order to break even?
Business
1 answer:
Tomtit [17]3 years ago
5 0

Answer:

2,500,000 million dollars to break even

Explanation:

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Cindyliz is wrong in this situation

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In order to find the present value of the bond we have to calculate the present value of investment A and subtract is from 1529. We can find the present value of A by discounting all its cash flows.

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3) 218.19/1.0987^2 (Discount by 2 years as cash will be received in 2 years)

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Semi annual coupons mean 2 payments a year. Bond B matures in 23 years which means a total of 46 payments (23*2). N=46. A coupon rate of 6.4 percent means that the bond pays $64 (0.064*1000) each year. $64 divided by 2 is 32 which is the amount of each semi annual payment Arjen receives. Pv= 766.91 FV = 1000

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4 years ago
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3 years ago
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4 years ago
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