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Author Question: Southeast Compositions, Inc is considering a project with the following cash flows: Initial Outlay ... (Read 82 times)

tuffie

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Southeast Compositions, Inc is considering a project with the following cash flows:
  Initial Outlay = 126,000
  Cash Flows: Year 1 = 44,000
  Year 2 = 59,000
  Year 3 = 64,000
  Compute the net present value of this project if the company's discount
 
  rate is 14.
  A) 715 B) 561 C) 209 D) 1,193

Question 2

Techno Robots produces a functioning toy robot. At a production and sales level of 10,000 robots, the firm has
  the following information:
 
  Selling price per unit = 15
  Variable costs per unit = 8
  EBIT = 17,500
  What is the break-even point in units for the firm?


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bd5255

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