[stuci]

Thanks a lot

[stuci]

why 60 %
i think it is sales / contribution margin*100%
in that case 500/400″ 100% = 80%

[stuci]

thanks

[stuci]

just one more please:))

Actual quantit of production was 500 unit , Fixed costs 80,000 and Contribution margin 400. Calculate Margin of safety?
BEP – 200 unit * 400 = 80,000
500 unit -200 = 300 units Margin of Safety

Is that right?

[stuci]

ok tanks

[stuci]

What about if i just add it to the NPV?
9,868 +3,000 =12,868

[stuci]

can ou elp me wit tat one as well please?

An initial cost of project is 25,000 and it a constant net cash flows of 11,000 for four years. The residual value is 3,000 , and te cost of capital WACC ued to finance the project is 10%.
Determinate the NPV value of te project.

Project Cash flow Disc. Factor PV
year 0 -25,000 1,000 -25,000
year 1 11,000 0.909 9,999
year 2 11,000 0.826 9,086
year 3 11,000 0.7519 8,270
year 4 11,000 0.683 7,513
NPV 9,868
that is what i think is , but what about the residual vallue of 3000?

[stuci]

thank you 🙂

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