Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. *handwritten answers only* what is "financial bre

*Handwritten Answers only* What is "Financial Break Even" point in Project Risk Analysis. How...

80.2K

Verified Solution

Question

Accounting

image

*Handwritten Answers only*

What is "Financial Break Even" point in Project Risk Analysis. How is it different from "Accounting Break Even"? Consider the following details for a Project with an Initial outlay of Rs.20,000,000: (in Rs thousands) Sales : 9090 Variable Cost ( 67% to sale) : 6090 Contribution (Sales- Variable Cost) : 3000 Less Fixed cost (includes Depreciation 2000): 3000 At Break even Sales, Margin /Profit nil If the Project has a life of 10 yrs with a Cost of Capital of 12% (PVIFA 10yrs @12% is 5.650), what will be the Financial Break Even of the Project. Assume the tax rate to be 33.33%.? (10 Marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students