Question
QUESTION 2.1 (4 marks) Consider a project with the following data: Price R67 Initial Investment R12 000 Useful life 3 yrs Fixed costs R6 000
QUESTION 2.1 (4 marks) Consider a project with the following data:
|
|
|
| Price | R67 |
| Initial Investment | R12 000 |
| Useful life | 3 yrs |
| Fixed costs | R6 000 |
| Variable costs per unit | R37/unit |
| Required return | 15% |
| PVIFA (15%, 3yrs) | 2.8550 |
Ignore the effect of taxes. REQUIRED: 2.1 What is the accounting breakeven quantity? (4 marks)
QUESTION 2.1 (4 marks) Consider a project with the following data:
|
|
|
| Price | R67 |
| Initial Investment | R12 000 |
| Useful life | 3 yrs |
| Fixed costs | R6 000 |
| Variable costs per unit | R37/unit |
| Required return | 15% |
| PVIFA (15%, 3yrs) | 2.8550 |
Ignore the effect of taxes. REQUIRED: 2.1 What is the accounting breakeven quantity? (4 marks)
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Green And Sustainable Finance
Authors: Simon Thompson
2nd Edition
1398609242, 978-1398609242
