Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(The Following information apply to the next three questions.) Cantor's has been busy analyzing a new project. Management has determined that the new project will

image text in transcribed
(The Following information apply to the next three questions.) Cantor's has been busy analyzing a new project. Management has determined that the new project will last eight years and requires an initial investment in fixed assets of $1.6 million, which will be depreciated over eight years with no expected salvage value. Assume no change in net working capital. The annual fixed costs are $329,000 and the variable cost will be $325 per unit and a sale price of $515 per unit. The tax rate is 34 percent and the required rate of return is 11 percent. 13. What is the accounting break even quantity? A. 1,027 units B. 1,627 units C. 1,731 units D. 2,784 units** E. 3,452 units 14. What is cash flow break even quantity? A. 1189 Units** B. 1,501 Units C. 1,627 Units D. 1,816 Units E. 1,730 Units 15. What is the financial break even quantity? A. 1,636 units B. 1,838 units (The Following information apply to the next three questions.) Cantor's has been busy analyzing a new project. Management has determined that the new project will last eight years and requires an initial investment in fixed assets of $1.6 million, which will be depreciated over eight years with no expected salvage value. Assume no change in net working capital. The annual fixed costs are $329,000 and the variable cost will be $325 per unit and a sale price of $515 per unit. The tax rate is 34 percent and the required rate of return is 11 percent. 13. What is the accounting break even quantity? A. 1,027 units B. 1,627 units C. 1,731 units D. 2,784 units** E. 3,452 units 14. What is cash flow break even quantity? A. 1189 Units** B. 1,501 Units C. 1,627 Units D. 1,816 Units E. 1,730 Units 15. What is the financial break even quantity? A. 1,636 units B. 1,838 units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Finance questions