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Given: selling price $47 variable cost per unit $43 units 60,000 FC 73,000 FC - Depr 150,000 tax rate 30% required rate of return 8%
Given: | |||||
selling price | $47 | ||||
variable cost per unit | $43 | ||||
units | 60,000 | ||||
FC | 73,000 | ||||
FC - Depr | 150,000 | ||||
tax rate | 30% | ||||
required rate of return | 8% | ||||
project duration | 5 | years | |||
initial investement | 750,000 | from which you can determine deprec using | |||
straight line for 5 years = $150,000 |
a) net income
b ) cash flow
c NPV
d) break even in units
e) break even in dollars
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