The sales level that results in a project's net present value exactly equaling zero is called the _____ break-even.
operational
leveraged
accounting
cash
financial
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correct answer is option : Break-even
Break even level of the sales is the level at which firm make zero profit or in other words sales = total cost
The sales level that results in a project's net present value exactly equaling zero is called...
The sales level that results in a project's net income exactly equaling zero is called the ________ break-even. scenario breakeven simulation sensitivity
The profitability index is cakulated by dividing the project's
net present value by the present value of the projected cash
outflows
The profitability index is calculated by dividing the project's net present value by the present value of the projected cash outflows. True • False
17. If the profitably index for a project exceeds 1, then the project's net present value is positive a. b. internal rate of return is less than the projects's disount rate. payback period is less than 5 years. d. c. Accounting rate of return is greater than the project's rate of return. 18. If a project's profitability index is less than 1, the project's a. discount rate is above its cost of capital. b. Internal rate of return is less...
3. Which one of the following statements is TRUE about a project's net present value? A. When choosing between projects, a company should take on the project with the lowest net present value B. When deciding to accept or reject a project, a company should reject the project if its net present value is positive C. A project's net present value provides the payback period of an investment B. When deciding to accept or reject a project, the project's net...
Please organize it exactly as seen and show your work
Required: 1. Compute each project's annual expected net cash flows. Net Income Depreciation expense Project Y Project Z $ 51,770 $ 33,666 77,500 103,333 ſ Expected net cash flows $ 131,900 $ 141,073 2. Determine each project's payback period. Payback Period Choose Numerator: Choose Denominator: Payback Period = Payback period Project Y Project 2 3. Compute each project's accounting rate of retum. Accounting Rate of Return 1 Choose Denominator: Choose...
A project's is computed as the present value of project related cash inflows and outflows. Select one: O A. internal rate of return B. net present value C. present value index O D. accounting rate of return
15. (Net Present Value) Calculate the project's net present value. The cost of capital is 10%. An initial cash outflow of $6,235 and a free cash flow of $7,125 in 5 years. b. An initial cash outflow of $6,235 and a free cash flow of $7,125 in 3 years An initial cash outflow of $6,235 and a free cash flow of $7,125 in 10 years An initial cash outflow of $6,235 and a free cash flow of $1,125 at the...
The net present value of a project's cash inflows is $8,216 at a 14 percent discount rate. The profitability index is 1.03 and the firm's tax rate is 34 percent. What is the initial cost of the project? $6,900.00 $7,018.50 $7,428.32 $7,976.70 $8,066.67
If the net present value of a project is zero, the project is earning a return equal to: Multple Choice Zero The rate of Inflation. The accounting rate of return. The required rate of return.
Question 13 analysis. To determine the degree to which the projected not present value of a project is dependent upon a single variable you should conduct Оа Scenario. Ob. Sensitivity Cash break-even Financial break-even Od Accounting break-even.