E. cannot be determined from the information provided
Valerie just completed analyzing a project. Her analysis indicates that the project will
have a 6-year life and require an initial cash outlay of $320,000. Annual sales are
estimated at $589,000 and the tax rate is 34 percent. The net present value is a negative
$320,000. Based on this analysis, the project is expected to operate at the:
A. maximum possible level of production.
B. minimum possible level of production.
C. financial break-even point.
D. accounting break-even point.
E. cash break-even point.
When evaluating an acquisition you should:
A. concentrate on book values and ignore market values.
B. focus on the total cash flows of the merged firm.
C. apply the rate of return that is relevant to the incremental cash flows.
D. ignore any one-time acquisition fees or transaction costs.
E. ignore any potential changes in management.
Which of the following are inversely related to variable costs per unit?
I. contribution margin per unit
II. number of units sold
III. operating cash flow per unit
IV. net profit per unit
A. I and II only
B. III and IV only
C. II, III, and IV only
D. I, III, and IV only
E. I, II, III, and IV