A Project Requires an Initial Investment of $69,000 for Equipment

question 77

Multiple Choice

A project requires an initial investment of $69,000 for equipment that will be depreciated using the straight-line method to zero over the project's 4-year life.The equipment can be sold for $15,000 at the end of the project.The project requires $8,700 in net working capital.The company expects to sell 31,000 units,±5 percent.The expected variable cost per unit is $12,and the expected fixed costs are $46,000.The fixed and variable cost estimates are considered accurate within a range of ±2 percent.The sales price is estimated at $19 a unit,±2 percent.The discount rate is 14 percent,and the tax rate is 34 percent.What is the operating cash flow for a sensitivity analysis using total fixed costs of $45,000?

• A)$124,520
• B)$116,520
• C)$122,000
• D)$119,385
• E)$132,033

Recognize behaviors indicative of potential substance dependence or abuse.

Understand the reasons behind underreporting of violence against nurses and strategies to encourage reporting.

Identify the nurse's responsibilities in cases of suspected child and elder abuse.

Recognize the importance of educating medical staff about the dynamics of abuse and the risks involved in leaving abusive situations.

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Definitions:

Unit Sales

The total number of individual units sold by a company in a specific period.

Margin Of Safety

The difference between actual sales and the break-even point, indicating the extent to which sales can drop before the company incurs a loss.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales volume, such as rent and salaries.

Annual Profit

The net income a company earns over a fiscal year, after subtracting all expenses, taxes, and costs from total revenue.