How can we determine the Break-Even Resale Value?

Q: How do you calculate the break even point?

A: Provide the means to compute the break even point: Break-Even Point: The break-even point refers to…

Q: What is operating break-even point?

A: It is point where, company has no profit no loss. At break-even point all fixed costs are recovered.

Q: For what reason might a traditional NPV (net present value) analysis not be an appropriate means for…

A: Flexible manufacturing systems are a gathering of numerically worked machines associated with a…

Q: WHAT DOES BREAK-EVEN ANALYSIS EXPLAIN?

A: Break Even - Break even is the level of sales wherein the total cost = Total revenue, in simple…

Q: What happens if the payback period is within the acceptable range?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: a. What is the break-even value in Dirhams?

A: Information Provided: Selling price = 70 Variable cost = 30 Advertising costs = 263,069 Rent costs…

Q: What three flaws does the regular payback have? Does the discounted payback correctall of these…

A: Three flaws of payback period: 1. Time value of money concept is ignored by the payback period. 2.…

Q: What is the principal objection to the payback method?

A: The Payback period is one of the traditional or non-discounting techniques of Capital budgeting. It…

Q: What is meant by the term abnormal rate of return?

A: Abnormal rate of return is return earned above or below the normal rate of return.

Q: What are the shortcomings of the payback period criterion? Which of these shortcomings are accounted…

A: Payback method is a manner of evaluating capital projects which computes the time taken by the cash…

Q: How is the payback period determined?

A:

Q: Describe the strengths and weakness of payback method.

A: Definition:   Payback method: Payback method refers to the method which measures the time period…

Q: What is the payback method? What are its main strengths and weaknesses?

A: Explain the meaning of the payback method.   The payback period is the expected time period which is…

Q: hat is the current market view on AUD/USD? (Will it appreciate and which depreciate? and why

A: The exchange rate depends on the interest rate in the market and inflation in the market and goes up…

Q: What makes the risk-adjusted discount rate approach appealing?

A: Answer: The approximation of the present cash value for high risk assets is called adjusted discount…

Q: What is a break-even point and how is it calculated?

A: Break-even point: Break-even point is defined as a situation where a firm’s expenses and revenues…

Q: What is residual value? Support your answer with an example

A: Residual value is also called as salvage value

Q: What is meant by the term payback period? How is the payback period determined? How can the payback…

A: Meaning: The payback period is the time required to earn back the amount invested in a particular…

Q: What is the potentially acceptable investment alternative?

A: An alternative investment is a financial asset that doesn't can be categorized as one of the…

Q: Define Incremental Borrowing Cost?

A: Incremental borrowing cost is used in the context of the cost of borrowing additional funds.

Q: What and why would be the type of the quantity used in the break even analysis and what would be the…

A: Break even analysis is the analysis of revenue and components of costs to model the relationship of…

Q: What is the meaning of break-even point?

A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Q: What is a possibe break-even point scenario in the resturant indurstry?

A: Break-even point is the point wherein revenues equals expenses or contribution equals fixed costs.…

Q: How weak reserch culture have an affect on Low potential investment? Explain in detail.

A: The low potential investment is also known as the low-risk investment. It refers to the investment…

Q: What is the reinvestment rate assumption when using MIRR?

A: Modified Internal Rate of Return: This method is used to rank investments or projects for an…

Q: How to estimate the Residual Value?

A: Residual value means value of fixed asset left after the use of fixed assets. Residual value also…

Q: Explain Effective Cost of the Sale-Leaseback?

A: Sales leaseback is a type of financial transaction where the owner sold its property to the other…

Q: What is the current market view on GBP/USD? (Will it appreciate and which depreciate? and why?)

A: The exchange rate are dependent on the the market factors and other factors which are point of…

Q: What is the decision rule for payback?

A: Payback period is the period of time taken by the project to recover the investment in such project…

Q: What is the conventional-payback method?

A: Conventional Payback Method

Q: What are some criticisms of the payback method?

A: Payback Period: Payback period is the period in which the project recovers its initial cost of the…

Q: What is breakup value?

A: Answer: Break-up value is nothing but a valuation that suggests the business will be split into…

Q: What is the future worth of a uniform series payment?

A: The future worth is the value of an asset at a predefined future date which increases at a specific…

Q: Why Pay back period method is not as effective as NPV?

A: Payback method  It doesn't consider account inflation as well as the cost of capital. It ignores…

Q: Discuss the various uses for break-even analysis?

A:

Q: What are the shortcomings of the payback period?

A: Payback period: The payback period assesses the time period required to recover the initial…

Q: What are the weaknesses of the payback method?  What other options do you have?

A: Pay back period is period required to recover initial amount of investment.

Q: Explain Discounted Present Value Techniques?

A: Capital budgeting is the process of allocating the resources of the company in long term investment…

Q: What is meant by the term payback period?

A: The Payback Period helps to determine the extent of time required to recoup the initial cash outlay…

Q: What is the cost of accrued liabilities? If accruals have such a low cost, why don’tfirms use them…

A: An accrued liability refers to an expense a business has incurred during a specific period but has…

Q: What are the weaknesses of the payback method?

A: Payback period is the amount of time required for firm to recover its initial investment in projects…

Q: What are the two main drawbacks of the payback method?

A: Payback period is the method in capital budgeting which refers to the time needed to recoup the…