Recent content by AC1978

For some reason I must have hit a button and didn't realize i was posting. I understand all parts of the formula except how to get the 155,000P. This formula is for the break even point of the cost/unit. Here are some other figures that were given that may be helpful: Required return 2.0%...

Have the following formula and need help understanding it: NPV = 0 = –[($315)(3,000) + ($245 – 240)(3,000) + ($245)(3,100 – 3,000)] + [(P – 245)(3,100) – ($315 – 240)(3,000)]/.02 0 = –945,000 – 15,000 – 24,500 + 155,000P – 49,225,000 155,000P = 50,209,500; P* = $323.93

Currently working on financial leverage and capital structure policy and came across this question that has me stumped. At this point I think I'm starting to over think/analyze my questions. Any help would be appreciated. Thanks in advance. A firm financed solely by equity is considering...

Been working in logistics for 10 years