Present value calculation
Not what you're looking for?
9- Present value calculation Without referring to tables or to the preprogrammed function on your financial calculator, use the basic formula for present value, along with the given opportunity cost, i, and the number of periods, n, to calculate the present value interest factor in each of the cases shown in the accompanying table. Compare the calculated value to the table value.
Opportunity Number of
Case cost, i periods, n
A 2% 4
B 10 2
C 5 3
D 13 2
7- Degree of operating leverage Grey Products has fixed operating costs of $380,000, variable operating costs of $16 per unit, and a selling price of $63.50 per unit.
a. Calculate the operating break even point in units.
b. Calculate the firm's EBIT at 9,000, 10,000, and 11,000 units, respectively.
c. With 10,000 units as a base, what are the percentage changes in units sold
and EBIT as sales move from the base to the other sales levels used in part b?
d. Use the percentages computed in part c to determine the degree of operating
leverage (DOL).
e. Use the formula for degree of operating leverage to determine the DOL at
10,000 units.
1-Write a 500 word summary, in which you answer the following questions:
? Besides net present value (NPV) and internal rate of return (IRR), what other criteria do organizations use to evaluate investments?
? What are the disadvantages of NPV as an investment criterion?
? How will the change in cost of capital affect the investment decision process?
Format your summary consistent with APA guidelines.
Purchase this Solution
Solution Summary
Present value calculations are provided. The value of the truth value is compared.
Solution Preview
Please see the attached file(s) for the complete tutorial. Thank you for the opportunity to be of assistance and of course, the opportunity to learn as well.
=============
9- Present value calculation Without referring to tables or to the preprogrammed function on your financial calculator, use the basic formula for present value, along with the given opportunity cost, i, and the number of periods, n, to calculate ...
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.