Answer: $379,500
Explanation:
Total Sales = <em>Break-even sales + Margin of Safety </em>
The Break-Even sales are therefore = 100% - 20%
= 80% of sales
Total Sales is therefore;
Break-even = 80% * Total Sales
Total Sales = Break-even/80%
= 759,000/0.8
= $948,750
Assuming no fixed costs, actual profit will be Sales less Variable expenses;
=Sales - Variable expenses
= 1 - 60%
Actual profit = 40% * Sales
= 40% * 948,750
= $379,500
Answer:
The correct answer to the following question will be "False".
Explanation:
- Horizontal fusion happens when multiple companies will offer different goods or services to certain users, or it could be the fusion of two organizations competition from a rival.
- In this GloboTech seems to be a notebook maker as well as Chipcomm is a developer of microcontrollers and certain other electronic components. That would have been a convocation ceremony as when the groups are considered in manufacturing the computer at different manufacturing phases.
So that the above is the right answer.
Answer:
MIRR = 16.6%
Explanation:
We have the formula to calculate the MIRR of the project:
+)
In which:
- FV - terminal value, the future value of net cash inflow which is assumed to be re-invested at the rate of cost of capital = WACC = 12.25%
- PV - the present value of the net cash outflows during the investment at the rate of cost of capital = WACC
- n: numbers of years (n=4)
The future value of net cash inflow Year i = Cash inflow × (1 + Cost of capital)^(number of years reinvested)
= Cash inflow × 1.1225^(n - i)
+) = $424.327
+) = $403.202
+) = $381.65
+) = $360
<em>=> Terminal Value = 424.327 + 403.202 + 381.65 + 360 = $1569.179</em>
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Present Value Year i =
The project requires the initial investment = - $850 and there are no cash outflows during 4 years of the project
<em>=> PV of the project = PV Year 0 = </em><em> = 850</em>
=> MIRR = = 0.166 = 16.6%