27

1. What is the expected value of NPV1?
2. $31.93m$38.31m$42.33m$45.45m$55.55m

1 points

QUESTION 28

1. If the company has a discount rate of 16%, what is the NPV0 of the project?
2. $9.45m$12.52m$18.03m$26.76m$35.51m

1 points

QUESTION 29

1. For the next 4 questions suppose the following data holds:
3. Initial Investment
4. $12,000
5. Price
6. $30/unit
7. Fixed Costs
8. $10,000/year
9. Discount Rate
10. 12%
11. Variable Costs
12. $20/unit
13. Project Life
14. 4 years
15. Depreciation
16. $3,000/year
17. Tax rate
18. 40%
20. How much is the contribution margin (after-tax)?
21. $5
22. $6
23. $7
24. $8
25. $9

1 points

QUESTION 30

1. What is the accounting break-even point?
2. 1000 units
3. 1125 units
4. 1250 units
5. 1300 units
6. 1600 units

1 points

QUESTION 31

1. How much is the EAC of the initial investment?
2. $3000
3. $3122
4. $3292
5. $3333
6. $3951