Question
I need someone to solve it please Fixed costs are 1,000,000 TL, unit variable cost is 40 TL, and the unit selling price is 60
I need someone to solve it please
Fixed costs are 1,000,000 TL, unit variable cost is 40 TL, and the unit selling price is 60 TL.
A) What is the break-even point in units?
B) What is the break-even point in monetary terms?
10) Evaluate the projects based on the payback method.
YEARS | PROJECTS | ||
A | B | C | |
0 | -12,000 | -12,000 | -12,000 |
1 | 3,500 | 3,500 | 0 |
2 | 3,500 | 3,500 | 0 |
3 | 3,500 | 3,500 | 0 |
4 | 3,500 | 3,500 | 14,000 |
5 | 0 | 30,000 | 3,600 |
11)
YEARS | PROJECTA | PROJECTB | FACTOR | DISCOUNTED A | DISCOUNTED B |
0 | -10,000 | -10,000 | |||
1 | 2,000 | 2,000 | |||
2 | 5,000 | 2,000 | |||
3 | 5,000 | 6,000 | |||
4 | 2,000 | 10,000 | |||
5 | 3,000 | 10,000 |
A) Which Project do you chose according to payback method?
B) Which Project do you chose according to discounted payback method?
12) Evaluate projects A and B using the net present value(NPV) method. Specify which one should be chosen. The discount rate is 10%.
PERIOD | CASH FLOW FOR PROJECT A | CASH FLOW FOR PROJECT B |
0 | -20000 | -30000 |
1 | 16000 | 14000 |
2 | 10000 | 14000 |
3 | 8000 | 14000 |
13)If your budget is $42,500, which Projects do you prefer?
PROJECTS | PV OF CASH INFLOWS | PV OF CASH OUTFLOWS | NPV | PI |
A | 10,000 | 5,000 | ||
B | 51,000 | 40,000 | ||
C | 12,000 | 10,000 | ||
D | 7,000 | 5,000 | ||
E | 35,000 | 30,000 | ||
F | 6,000 | 2,500 |
14) The cash flows for the K and L projects that company A considering are provided in the table. Determine which Project to choose by calculating the internal rate of return (IRR). The companys cost of capital is 18%.
PERIOD | CASH FLOWS OF PROJECT K | CASH FLOWS OF PROJECT L |
0 | -44,200 | 21,400 |
1 | 20,000 | 10,000 |
2 | 20,000 | 10,000 |
3 | 20,000 | 10,000 |
15) What is the value of a firm that pay divident $100 each year?
16) The Steel Cable currently pays a divident of 2 TL pers hare. An annual divident growth of 6% is expected. Investors expect at least an 8% return from this investment. What is the real value of Steel Cable?
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