Can someone please help me with this specific financial problem? - variable projection camera adapter evil yes, genius no
Project Analysis
You think about a new project launch.The project is $ 1400000, a 4-year history, costs, and have no residual value, depreciation, linear zero.Sales are estimated at 170 units per year, the unit price is $ 17,000, variable costs per unit is $ 10,500, and the fixed costs are $ 380,000 per year. The required return on the project is 12% and the rate of tax in question is 35%.
a) Based on your experience, you believe that sales, variable costs and fixed cost projections given here are probably accurate to + (-%) 10. What are the upper and lower limits of projections?
Ok, I read the answer, and I do not understand. Heres what we read:
Designer Sales variable costs per unit of fixed costs
Base 170 $ 10,500 $ 380,000
Best 187 $ 9450 $ 342,000
Worst 153 $ 11.550 $ 418.000
My question is: How have these figures (the best and worst)
Monday, December 7, 2009
Variable Projection Camera Adapter Evil Yes, Genius No Can Someone Please Help Me With This Specific Financial Problem?
3 comments:
I have no idea what he's talking about.
Hello,
To get the most from the addition of 10% of the base.
The worst: 10% deducted from the base
They have 170 units. So 10% is: 170 * 10/100 = 17
Best: 170 +17 = 187
Worse, 170-17 = 153
The same goes for the other figures.
Base: $ 10,500. 10% * 10500 = 1050 $
Better: 10500-1050 = $ 9450
Worse, 10500 $ 1050 = 11550
Base: $ 380,000. 10% * $ 380,000 = $ 38,000
Better: 380000-38000 = 342000 $
Worse, 380000 $ 38000 = 418000
If the itchiness of a project for the units, the best projection height (we have 10%). And the cost, the best forecast is the lowest (-10%). The nature of the Varai is different.
I hope this answer can help your practice.
Wow ... I do not even know have time to read them. My impression is that this problem occurs, you are standing on their work in context. If you come in to Yahoo Answers to find out should not be in this position. My 2 cents.
Post a Comment