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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
- 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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