Management Analysis

1. Briefly describe the concepts of ROI, Payback Period, and Breakeven Analysis

2. Company XYZ is looking to launch a new product next year, Product A will cost $50,000 to launch, and will bring in a profit of $100,000, Product B will cost $500,000 to launch and bring in a profit of $900,000. What is the ROI of each product and which should the company launch?

3. Project A which yields the following cash flows over its five-year life. What is the Payback?

Year	Cash Flow	Net Cash Flow
0	-1,000	-1,000
1	500	-500
2	400	-100
3	200	100
4	200	300
5	100	400

4. A firm produces and sells a product with these values:

F = Total Fixed costs = $1,600, V = Variable cost per unit = $15, P = Selling price per unit = $40

What is the breakeven point in Units? How many Units does it need to sell in order to make $1,800?