An 8 year project is estimated to produce a product with the following information: selling price = $80 per unit; variable costs are $65 per unit; fixed costs are $20,000; required return is 10%; initial investment = $200,000. Calculate the financial break-even.
A) 4,000
B) 3,833
C) 4,833
D) 3,000
Ans: B) 3,833
You might also like to view...
A project team assesses their primary risk factor's probability of failure with a maturity risk of 0.3, a complexity risk of 0.7, and a dependency risk of 0.8. The probability of failure is:
A) Less than or equal to 0.3. B) Greater than 0.3 but less than or equal to 0.55. C) Greater than 0.56 but less than or equal to 0.89. D) Greater than or equal to 0.9.
Elisa, a manager at Thornton Consulting, recently noticed that turnover is particularly high in one of the production units
Elisa assumes that the turnover is caused by low wages, so she immediately increases the salaries of all employees in the unit. Elisa's actions have most likely been affected by ________. A) normative decision making B) uncertainty avoidance C) bounded rationality D) acculteration