5. the basic form of what if analysis is called scenario analysis or the determination of...
5. the basic form of what if analysis is called scenario analysis or the determination of what happens to NPV estimates when we ask what if questions. True or false? 6. Sensitivity analysis is an investigation of what happens to NPV when all variables are changed. True or False? 7. in calculating break even, it makes no difference to distinguish between variable costs and fixed costs. True or False?
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| Ans 5 | Statement is TRUE : the basic form of what if analysis is called scenario analysis or the determination of what happens to NPV estimates when we ask what if questions | ||||||
| Ans 6 | Statement is FALSE : Sensitivity analysis is an investigation of what happens to NPV when all variables are changed. True or False? | ||||||
| Ans 7 | Statement is FALSE : in calculating break even, it makes no difference to distinguish between variable costs and fixed costs | ||||||
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5. the basic form of what if analysis is called scenario
analysis or the determination of...
We should always expect scenario analysis to provide more accurate estimates for NPV than sensitivity analysis. True Fa...
We should always expect scenario analysis to provide more accurate estimates for NPV than sensitivity analysis. True False
Please solve True and falses 1. If the yield to maturity of a bond is less...
Please solve True and
falses
1. If the yield to maturity of a bond is less than the bond's coupon rate, then the bond will sell at a discount a. True b. False 2. Bondholders face interest rate risk because as interest rates increase, bond prices decrease. a. True Bob. False that the thou 3. Stark Industries purchased a new arc reactor two years ago at a cost of $1,739,000.00. Last year, the government changed the emission requirement and this...
my question is Q1 , calculating costs and break even , thank you IU. SCUTIU A...
my question is Q1 , calculating costs and break even , thank
you
IU. SCUTIU A JU to your desk and shows you the scenario analysis that he has potential new project. All three scenarios show a positive NPV. He sta to take this project!" What is your initial reaction regarding this new pro believe the results of the scenario analysis? womes that he has just completed for a NPV. He states, "We have this new project. Do you connect...
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...
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?
a. break-even a b. sensitivity analysis C. Scenario analysis d. Boolian analysis 9. Pro Forma Financial...
a. break-even a b. sensitivity analysis C. Scenario analysis d. Boolian analysis 9. Pro Forma Financial Statements refer to: a. Financial statements submitted to the SEC b. Historical financial data c. Financial projections d. Incomplete financial statements 10. Which was not listed as a problem with the percent of sales approach? a. There may be fixed costs. b. It may require sophisticated mathematics Debt and equity may not increase at the same rate. d. Assets may come in fixed sizes....
3 Problem 11-5 Sensitivity Analysis and Break-Even [LO1, 3] We are evaluating a project that costs...
3 Problem 11-5 Sensitivity Analysis and Break-Even [LO1, 3] We are evaluating a project that costs $691,200, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 85,000 units per year. Price per unit is $50, variable cost per unit is $35, and fixed costs are $740,000 per year. The tax rate is 24 percent, and we require a return of 10 percent on...
Several types of analyses are available for evaluating a project's risk. In the following table, correctly...
Several types of analyses are available for evaluating a project's risk. In the following table, correctly identify the analysis being described. Scenario Analysis o Sensitivity Simulation Analysis Analysis 0 0 0 Estimates the NPV after a given period of time, assuming specific changes in the values of multiple key factors that could affect a project's NPV Uses an algorithmic method to pick values randomly from probability distributions to calculate a project's NPV Requires changes in one assumption at a time...
Volume (LO 3-1 3-26. Basic Decision Analysis Using CVP Anu's Amusement Center has collected the following...
Volume (LO 3-1 3-26. Basic Decision Analysis Using CVP Anu's Amusement Center has collected the following data for operations for the year. S Total revenues ......... Total fixed costs .. Total variable costs ....... Total tickets sold........ $2,400,000 .. $ 656,250 $1,350,000 75,000 110 Part II Cost Analysis and Estimation Required a. What is the average selling price for a ticket? b. What is the average variable cost per ticket? c. What is the average contribution margin per ticket? d....
We should always expect scenario analysis to provide more accurate estimates for NPV than sensitivity analysis. True False
Please solve True and
falses
1. If the yield to maturity of a bond is less than the bond's coupon rate, then the bond will sell at a discount a. True b. False 2. Bondholders face interest rate risk because as interest rates increase, bond prices decrease. a. True Bob. False that the thou 3. Stark Industries purchased a new arc reactor two years ago at a cost of $1,739,000.00. Last year, the government changed the emission requirement and this...
my question is Q1 , calculating costs and break even , thank
you
IU. SCUTIU A JU to your desk and shows you the scenario analysis that he has potential new project. All three scenarios show a positive NPV. He sta to take this project!" What is your initial reaction regarding this new pro believe the results of the scenario analysis? womes that he has just completed for a NPV. He states, "We have this new project. Do you connect...
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...
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?
a. break-even a b. sensitivity analysis C. Scenario analysis d. Boolian analysis 9. Pro Forma Financial Statements refer to: a. Financial statements submitted to the SEC b. Historical financial data c. Financial projections d. Incomplete financial statements 10. Which was not listed as a problem with the percent of sales approach? a. There may be fixed costs. b. It may require sophisticated mathematics Debt and equity may not increase at the same rate. d. Assets may come in fixed sizes....
3 Problem 11-5 Sensitivity Analysis and Break-Even [LO1, 3] We are evaluating a project that costs $691,200, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 85,000 units per year. Price per unit is $50, variable cost per unit is $35, and fixed costs are $740,000 per year. The tax rate is 24 percent, and we require a return of 10 percent on...
Several types of analyses are available for evaluating a project's risk. In the following table, correctly identify the analysis being described. Scenario Analysis o Sensitivity Simulation Analysis Analysis 0 0 0 Estimates the NPV after a given period of time, assuming specific changes in the values of multiple key factors that could affect a project's NPV Uses an algorithmic method to pick values randomly from probability distributions to calculate a project's NPV Requires changes in one assumption at a time...
Volume (LO 3-1 3-26. Basic Decision Analysis Using CVP Anu's Amusement Center has collected the following data for operations for the year. S Total revenues ......... Total fixed costs .. Total variable costs ....... Total tickets sold........ $2,400,000 .. $ 656,250 $1,350,000 75,000 110 Part II Cost Analysis and Estimation Required a. What is the average selling price for a ticket? b. What is the average variable cost per ticket? c. What is the average contribution margin per ticket? d....
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