In scenario analysis, which one of the following items is least apt to be assigned a...
In scenario analysis, which one of the following items is least apt to be assigned a range of values?
A. Sales price per unit
B. Variable cost per unit
C. Fixed cost
D. Initial cost
E. Sales quantity
Homework Answers
Answer:
Option D is correct i.e. Initial cost
Initial cost is constant . Initial cost is the initial investment which is fixed. Other factors are variables.
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In scenario analysis, which one of the following items is least
apt to be assigned a...
26. Which one of the following is the least apt to encourage managers to act in...
26. Which one of the following is the least apt to encourage managers to act in the best interest of the shareholders? A. Shareholder election of the board of directors, who in turn select managers B. Threat of takeover by another firm C. Linking manager compensation to share value D. Compensating managers with fixed salaries E. Granting stock options to key managers
Question 6 (of 19) 10.00 points Problem 11-3 Scenario Analysis [LO2 Sloan Transmissions, Inc., has the...
Question 6 (of 19) 10.00 points Problem 11-3 Scenario Analysis [LO2 Sloan Transmissions, Inc., has the following estimates for its new gear assembly project price # $3,000 per unit variable costs $800 per unit, fixed costs $1.8 million; quantity 90,000 units. Suppose the company believes all of its estimates are accurate only to within 120 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? what about the worst-case scenario?...
3. Scenario Analysis (LO2) Whitewater Transmissions Inc. has the following estimates for its new gear assembly...
3. Scenario Analysis (LO2) Whitewater Transmissions Inc. has the following estimates for its new gear assembly project: price $1,700 per unit, variable costs $480 per unit; fixed costs = $4.1 million; quantity 95,000 units. Suppose the company believes all of its estimates are accurate only to within +15 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst- case scenario?
Scenario Analysis Consider a 4-year project with the following information. Initial investment = $420,000; straight-lin...
Scenario Analysis
Consider a 4-year project with the following information. Initial investment = $420,000; straight-line depreciation over the 4-year life No salvage value Quantity sold = 110,000 units Price per unit = $23 Tax rate = 34 percent Variable costs per unit = $19 Discount rate = 10 percent Fixed costs = $190,000 1. How sensitive is OCF to changes in quantity sold? ii. How sensitive is NPV to changes in quantity sold?
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400...
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400 per unit; variable costs = $220 per unit, fixed costs = $3.9 million, quantity = 85,000 units. Suppose the company believes all of its estimates are accurate only to within +15 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario? 15% Price accuracy Variable cost accuracy Fixed cost...
which of the following statements most appropriately describes scenario analysis? A. It looks at the project...
which of the following statements most appropriately describes scenario analysis? A. It looks at the project by changing one variable at a time B. It looks at the project by changing the cost of capital over time. C. It provides the break-even levell of sales for the project D. it looks at different but logically consistent combinations of variables. E. None of these
i need 100% fresh and new answers for both parts 3.1 Perform a scenario analysis on...
i need 100% fresh and new
answers for both parts
3.1 Perform a scenario analysis on the data provided Case Study: Assume that the company, where you are working as a team in Financial Department, is considering a potential project with a new product that is expected to sell for an average price of $22 per unit and the company expects it can sell 650 000 unit per year at this price for a period of 4 years. Launching this...
PLEASE ANSWER THE FOLLOWING QUESTIONS: Sales Mix and Break-Even Analysis Megan Company has fixed costs of...
PLEASE ANSWER THE FOLLOWING QUESTIONS:
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,833,520. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Model 94 $950 $400 $550 Model 81 680 500 180 The sales mix for products Model 94 and Model 81 is 40% and 60%, respectively. Determine the break-even point in units...
Sinking fund arrangements are least apt to contain which one of these requirements? A. a deferred...
Sinking fund arrangements are least apt to contain which one of these requirements? A. a deferred provision for the first few years B. a one-time repayment of the entire principal and interest at maturity C. a balloon payment D. equal payments of principal over the life of the bond E. sufficient payments over the bonds’ life to retire the entire bond issue
18-Which of the following statements is wrong regarding the approach to investment appraisal? a Break-even analysis...
18-Which of the following statements is wrong regarding the approach to investment appraisal? a Break-even analysis is used to find out how far off the estimates could be before the project begins to lose money b. The marginal cost of sales will have to be incurred whether the goods are manufactured or purchased, so we can ignore the marginal cost of sales. e. Order maybe accepted below the normal selling price when the order will result in further contribution to...
Question 6 (of 19) 10.00 points Problem 11-3 Scenario Analysis [LO2 Sloan Transmissions, Inc., has the following estimates for its new gear assembly project price # $3,000 per unit variable costs $800 per unit, fixed costs $1.8 million; quantity 90,000 units. Suppose the company believes all of its estimates are accurate only to within 120 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? what about the worst-case scenario?...
3. Scenario Analysis (LO2) Whitewater Transmissions Inc. has the following estimates for its new gear assembly project: price $1,700 per unit, variable costs $480 per unit; fixed costs = $4.1 million; quantity 95,000 units. Suppose the company believes all of its estimates are accurate only to within +15 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst- case scenario?
Scenario Analysis
Consider a 4-year project with the following information. Initial investment = $420,000; straight-line depreciation over the 4-year life No salvage value Quantity sold = 110,000 units Price per unit = $23 Tax rate = 34 percent Variable costs per unit = $19 Discount rate = 10 percent Fixed costs = $190,000 1. How sensitive is OCF to changes in quantity sold? ii. How sensitive is NPV to changes in quantity sold?
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400 per unit; variable costs = $220 per unit, fixed costs = $3.9 million, quantity = 85,000 units. Suppose the company believes all of its estimates are accurate only to within +15 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario? 15% Price accuracy Variable cost accuracy Fixed cost...
i need 100% fresh and new
answers for both parts
3.1 Perform a scenario analysis on the data provided Case Study: Assume that the company, where you are working as a team in Financial Department, is considering a potential project with a new product that is expected to sell for an average price of $22 per unit and the company expects it can sell 650 000 unit per year at this price for a period of 4 years. Launching this...
PLEASE ANSWER THE FOLLOWING QUESTIONS:
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,833,520. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Model 94 $950 $400 $550 Model 81 680 500 180 The sales mix for products Model 94 and Model 81 is 40% and 60%, respectively. Determine the break-even point in units...
18-Which of the following statements is wrong regarding the approach to investment appraisal? a Break-even analysis is used to find out how far off the estimates could be before the project begins to lose money b. The marginal cost of sales will have to be incurred whether the goods are manufactured or purchased, so we can ignore the marginal cost of sales. e. Order maybe accepted below the normal selling price when the order will result in further contribution to...
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