Ask Question, Ask an Expert


Ask Basic Finance Expert

find out the accounting as well as the finance break-even point for the following project: initial investment of $500,000, revenues of $700,000, $100,000 fixed costs, $75,000 depreciation, 60% variable costs, and a 35% tax rate. What happens to the break-even if a trade-off is made that increases fixed costs by $30,000 and decreases variable costs to 55% of sales? Assuming the project is going to last 6 years, and opportunity cost of capital is 9%.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940554

Have any Question? 

Related Questions in Basic Finance

The past five monthly returns for pgampe are -347 percent

The past five monthly returns for PG&E are -3.47 percent, 4.63 percent, 4.07 percent, 6.92 percent, and 3.88 percent. What is the average monthly return? (Round your answer to 3 decimal places.)

Homework setdirections answer the following questions on a

Homework Set Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assi ...

Fundamentals of finance - assignment requirements-you work

FUNDAMENTALS OF FINANCE - ASSIGNMENT REQUIREMENTS- You work in the Finance division of the Richmond Manufacturing Company Ltd. The company is in the process of deciding whether or not to purchase a new plastic injection ...

The city of malaise is considering a 10 tax on the revenues

The city of Malaise is considering a 10% tax on the revenues of all hotels/motels inside the city limits. Although not completely different from hotels and motels in the nearby suburbs, the ones in Malaise have a distinc ...

You estimate that you will owe 40300 in student loans by

You estimate that you will owe $40,300 in student loans by the time you graduate. The interest rate is 4.25 percent. If you want to have this debt paid in full within ten years, how much must you pay each month? Atlas In ...

A firm has common stock of 80 paid-in surplus of 160 total

A firm has common stock of 80, paid-in surplus of 160, total liabilities of 350, current assets of 420, and fixed assets of 630. What is the amount of the shareholders' equity?

If you suspect that a companys advertising expenditures in

If you suspect that a company's advertising expenditures in a given month affect its sales in future months, what correlations would you look at to confirm your suspicions? How would you find them?

Fed facility programs during the credit crisis explain how

Fed Facility Programs during the Credit Crisis: Explain how the Fed's facility programs improved liquidity in some debt markets.

Assignment2 pages apa style showing at least 3 source for

Assignment 2 Pages, APA style showing at least 3 source for the following: Suppose a U.S. wood-products company has facilities and employees in Canada providing its raw materials (wood), but has most of its sales in the ...

What is diversificationwhat is the expected return to a

What is diversification? What is the expected return to a portfolio that is composed of a variety of financial assets?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate