Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management EMEA Theory And Practice

Authors: Michael Ehrhardt, Roland Fox, Eugene Brigham

2nd Edition

1473760216, 9781473760219

More Books

Students also viewed these Finance questions

Question

=+b) What is the best choice using the expected-value approach?

Answered: 1 week ago