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A company invested $400,000 to develop a new computer.

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A company invested $400,000 to develop a new computer. The variable costs were $65 per unit and fixed costs were $175,000. It is expected to take four years to become marketable. The computers will sell for $100. The project's cost of capital is 12.5%.;a) What is the project's financial break even point in units?;b) The computers have hit the market and there is a 35% increase in sales. What is the percent change in OCF after the first year of sales?;Additional Requirements;Min Pages: 1;Level of Detail: Show all work

 

Paper#21793 | Written in 18-Jul-2015

Price : $17
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