subject
Business, 27.09.2019 17:20 tray71016

You have determined that an ocf of $142,098 will result in a zero net present value for a project, which is the minimum requirement for project acceptance. the fixed costs are $418,000 and the contribution margin per unit is $87.20. the company feels that it can realistically capture 4.5 percent of the 120,000 unit market for this product. the tax rate is 34 percent and the required rate of return is 11 percent. should the company develop the new product? why or why not? yes. the project's required rate of return exceeds the expected irr. yes. the expected level of sales exceeds the required level of production. no. the required level of production exceeds the expected level of sales. no; the contribution margin is too high no. the ocf is too low.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 12:00
Identify at least 3 body language messages that project a positive attitude
Answers: 2
question
Business, 22.06.2019 16:30
Why are there so many types of diversion programs for juveniles
Answers: 2
question
Business, 22.06.2019 17:50
Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.
Answers: 3
question
Business, 23.06.2019 00:00
The undress company produces a dress that women use to quickly and easily change in public. the company is just over a year old and has been successful through a kickstarter campaign. the undress company has identified a customer segment, but if it wants to reach a larger customer segment market outside of the kickstarter family, what question must it answer?
Answers: 1
You know the right answer?
You have determined that an ocf of $142,098 will result in a zero net present value for a project, w...
Questions
question
Mathematics, 10.03.2020 09:12