Take home quiz multiple choice questions. Need this in an hour or two please.
Multiple Choice (5 points each) ABC Homes builds homes in New YorkiNew Jersey area. They build homes which are priced between $400,000 and $950,000. The following is a table indicating the company's expected sales forecast for different economic scenarios. Use the following table to answer Questions 1 5. Scenario 1 Scenario 2 Scenario 3 (Recession) (Normal Economy) (Booming Economy) Probability 25% 50% 25% Higher-Priced Homes Unit Sales 0 35 55 Avg. Price per Home $950,000 $950,000 $950,000 Total Revenues '? $33,250,000 $52,250,000 Medium-Priced Homes Unit Sales 35 '? T0 Avg. Pri cc per Home $700,000 $100000 $700000 Total Revenues $24,500,000 $38,500,000 $49,000,000 Lower-Priced Homes Unit Sales 65 80 95 Avg. Price per Home $400,000 $400,000 $400,000 Total Revenues $26,000,000 $32,000.000 '? Total Revenues for Each 1' $103,150,000 $139,250,000 Scenario 1. What are the expected revenues from Higher-Priced Homes in a Recession for ABC Homes? 3. $ 950,000 b. $ 7,600,000 c. $24,500,000 01. $26,000,000 2. What are the Total Revenues expected in a recession? a. $24,500,000 13. $26,000,000 0. $58,100,000 d. $62,700,000 3. How many Medium-Priced homes does the company expect to sell in a Normal Economy ? a. 35 b. 55 c. 65 (1. T5 4. 'What are the Total Revenues expected from Lower-Priced homes in a Booming Economy? a. $38,000,000 13. $42,000,000 c. $49,000,000 rl .00? Will 00\" a. mJu,uuu,uuu 10. $42,000,000 e. $49,000,000 0. $52,250,000 5. What are the Expected Revenues for ABC Homes for the year? a. $101,212,500 b. $210,750,000 e. $275,650,250 d. $301,100,000 Use the following table to answer questions 6 9 (Discount rate = 20%). Year 0 Year 1 Year 2 Year 3 Revenues $5,000,000 $5,000,000 $5,000,000 Less: Variable cost (3,500,000) (3,500,000) (3,500,000) Less: Fixed cost (500,000) (500,000) (500,000) Less: Depreciation (500,000) (500,000) (500,000) Net operating Income 500.000 500.000 500.000 Less: Taxes (30%) (150,000) (150,000) (150,000) NOPAT 350,000 350,000 350,000 Plus: Depreciation 500.000 500.000 500.000 Less: Increase in CAPEK $111,500,000) 500,000 Less: Increase in NOWC $600,000) - - 500,000 Free Cash Flow (PCP) $(2,000,000) $850,000 $850,000 $1,850,000 6. What is the NPV of the project? a. $312,786.23 b. $369,212.96 e. $408,714.24 (1. $423,490.82 7. 'What would be the NPV of the project if the Revenues declined by 10% (assume everything else remains the same)? a. $(287,650.40) 10. $095,345.73) e. $845,820.37) 0. $868,055.56) 8. What would be the NPV of the project if the Variable Cost increased by 10%? (Revenues remain the same at $5,000,000 per year)- a. $046,875.00) b. $089,354.62) e. $910,421.34) a. $034,825.96) Use the following information to answer Questions 9 and 10. Unit Sales: 500,000 Price per unit: $100 Variable cost per unit: $80 Fixed cost per year: $900,000 Depreciation: $400,000 Unit Sales: 500,000 Price per unit: $100 Variable cost per unit: $30 Fixed cost per year: $900,000 Depreciation: $400,000 9. What is the accounting break-even number of units? a. 45,000 b. 52,000 c. 65,000 a. 73,000 10. What is the cash break-even number of units? a. 37,000 b. 45,000 0. 52,000 (1. 65,000 11. Cash flows used in the calculation of proj ect NPV are known as: 3. expected values b. variable costs c. xed costs d. random values 12. Basic determinants of an investment's cash ows are known as: a. overhead costs b. value drivers c. xed costs d. indeterminate drivers 13. Financial managers conduct to evaluate the effect of each value driver on an investment's NPV. a. surveys b. polls c. sensitivity analysis d. case analysis 14. An increase in revenues would be considered a value driver. a. positive b. negative c. neutral (1. cannot be determined without more information 15. An increase in variable cost would be considered a value driver. a. positive b. negative 0. neutral a. positive b. negative c. neutral (1. cannot be determined without more information 15. An increase in variable cost would be considered a value driver. a. positive b. negative c. neutral d. cannot be determined without more information 16. Financial managers conduct to evaluate the effect of changes in multiple value drivers on a project's NPV. a. sensitivity analysis b. scenario analysis c. simulation analysis d. survey analysis 17. provides analysts with thousands of estimates of NPV, built upon thousands of values for each of the investment's value drivers. a. Sensitivity analysis b. Scenario analysis c. Simulation analysis d. Survey analysis 18. takes depreciation in consideration when calculating the breakeven analysis. a. Cash break-even b. Accounting break-even c. Expected value break-even d. Strategic break even 19. does not take depreciation in consideration when calculating the break-even analysis. a. Cash break-even b. Accounting break-even c. Expected value break-even d. Strategic break even 20. A decrease in the availability of a competing product would most likely lead your company to choose the a. abandonment option b. contraction option c. delay option d. expansion option QUESTIONS 11. Fixed costs 12. Overhead costs 13. Sensitivity analysis 14. Positive 15. Positive 16. Sensitivity analysis 17. Simulation analysis 18. Strategic break even 19. cash-break even 20. expansion option