A project has expected sales of 63,000 units, ±4 percent; variable costs per unit of $84, ±5 percent; fixed costs of $287,000, ±1 percent; and a sales price per unit of $219, ±2 percent. The depreciation expense is $53,000 and the tax rate is 23 percent. What is the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $85?
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For any given capital project proposal, the discount rate sh…
For any given capital project proposal, the discount rate should be based on the:
Stray Cats has annual sales of $847,000, annual depreciation…
Stray Cats has annual sales of $847,000, annual depreciation of $47,000, and net working capital of $43,000. The tax rate is 21 percent and the profit margin is 7.3 percent. The firm has no interest expense. What is the amount of the operating cash flow?
Assume a project has a discounted payback that equals the pr…
Assume a project has a discounted payback that equals the project’s life. The project’s sales quantity must be at which one of these break-even points?
A stock has an expected return of 11.89 percent and its rewa…
A stock has an expected return of 11.89 percent and its reward-to-risk ratio is 7.4 percent. If the risk-free rate is 3 percent, what is the stock’s beta?
Marques River Cruises purchased a building for $544,700 and…
Marques River Cruises purchased a building for $544,700 and made repairs costing $73,400. The annual taxes on the property are $6,600. The building has a current market value of $712,500 and a current book value of $278,000. The building is mortgage-free. If the company decides to use this building for a new project, what value, if any, should be included in the initial cash flow of the project related to this building?
The optimal investment in current assets for an active compa…
The optimal investment in current assets for an active company occurs at the point where:
Which one of the following had the least volatile annual ret…
Which one of the following had the least volatile annual returns over the period of 1926–2019?
The most common way to finance a temporary cash deficit is w…
The most common way to finance a temporary cash deficit is with a:
Assume a project is independent and has financing-type cash…
Assume a project is independent and has financing-type cash flows. Which one of these statements is correct?