You are considering investing in a company that cultivates, Ask an Expert

Finance

You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information:

Sales price per abalone = $ 85.00
Variable costs per abalone = $ 5.40
Fixed costs per year = $ 680,000.00
Depreciation per year = $ 51,000.00
Tax rate = 40.00 %

The discount rate for the company is 11 percent, the initial investment in equipment is $357,000, and the project's economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the project's life.

What is the financial break-even level for the project? _____units

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M924855

Have any Question?Write your Review or question?

Related Questions in Basic Finance

What is the difference between earnings per share and pe

What is the difference between Earnings per Share and P/E ratio? What do they measure?

One year ago you bought common stock for 20 per share today

One year ago, you bought common stock for $20 per share. Today the stock is selling for $19 per share. During the year, you received four dividend payments, each in the amount of $0.20 per share. (a) What was your rate o ...

You will receive a payment of 10000 per year forever

You will receive a payment of $10,000 per year forever; however the first payment will not begin for 9 years. If the appropriate interest rate is 7%, what is this worth today? Is this 10,000/.07 for 142,857.14? Does it m ...

You are 25 years old and have not started saving for

You are 25 years old and have not started saving for retirement yet. You want to retire at 55. You want $1,000,000 in your account. You can earn 5% on average over the next 30 years. How much do you have to save each mon ...

You make 6000 annual deposits into a retirement account

You make $6,000 annual deposits into a retirement account that pays 10.3 percent interest compounded monthly. How large will your account balance be in 35 years?

Question - phone ltd plans to open an outlet at a shopping

Question - Phone Ltd plans to open an outlet at a shopping mall. The investment requires an initial outlay of $90,000 which is expected to be financed through a bank loan. A discussion with the mall management reveals th ...

What type of data values are quantitative and the number of

What type of data values are quantitative and the number of values is finite or countable?

Net income is 300 million depreciation is 70 million

Net income is 300 million, depreciation is 70 million, capital expenditures are 120 million, investment in working capital is 30 million, interest expenses (before tax) are 40 million, and outstanding debt is 850 million ...

A client has identified two annuities that are available

A client has identified two annuities that are available for purchase, The first annuity pays $1,000 at the end of each month over a 3-year period at a nominal rate of 13% p.a. The second annuity pays $3,000 at the end o ...

Assignment - tax issues associated with financial

Assignment - Tax Issues Associated with Financial Planning Understanding the tax consequences of your financial planning decisions is very important. These decisions may sometimes have life-long consequences in addition ...

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

Recent Questions

Ask Basic Finance Expert