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Break-even Analysis (Please solve by hand and not in excel) Cash Break-even Quantity Where OCF = 0 Q = (FC)/(P v) (ignoring taxes) Accounting Break-even

Break-even Analysis (Please solve by hand and not in excel)

Cash Break-even Quantity

Where OCF = 0

Q = (FC)/(P v) (ignoring taxes)

Accounting Break-even Quantity

Where NI = 0

Q = (FC + D)/(P v)

Financial Break-even Quantity

Where NPV = 0

What OCF (PMT) makes NPV = 0?

Q = ((OCF from above) + Fixed Cost)/(P v)

Cash B-E < Accounting B-E < Financial B-E

  1. What is the Cash Break-even quantity?

2. What is the Accounting Break-even quantity?

3. What is the Financial Break-even quantity?

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