Products Breakeven Product A Product B

Q: What is operating break-even point?

A: It is point where, company has no profit no loss. At break-even point all fixed costs are recovered.

Q: What are the Uneven-Payment Series?

A: What are the Uneven-Payment Series.

Q: How can we find the present worth of any uneven stream of payments?

A: The question is based on the concept of present value of uneven cash flow

Q: What happens if the payback period is within the acceptable range?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: he net present value is incorrect. Can you try the problem again?

A: Net Present Value (NPV) The difference between the present value of the cash outflow and inflow at…

Q: What is break-even in units?

A: Cost volume profit analysis: It can be defined as a technique that is used by the business to…

Q: What do we mean by a uniform series payment?

A: Under uniform series of payment, payment of same amount is made or received at a regular time…

Q: What is the principal objection to the payback method?

A: The Payback period is one of the traditional or non-discounting techniques of Capital budgeting. It…

Q: Explain Payment Caps and Negative Amortization?

A: Payment Caps: A payment cap is a customer protection that bounds the amount that your monthly…

Q: explain why payback period is not a preferred method

A: The payback period is a period in which the total costs of an investment are recovered through cash…

Q: What is the payback method? What are its main strengths and weaknesses?

A: Explain the meaning of the payback method.   The payback period is the expected time period which is…

Q: What are the advantages of using duration as opposed to interest-sensitive gap analysis?

A: Asset liability management is a technique used to address the risks that financial institutions face…

Q: What is a break-even point and how is it calculated?

A: Break-even point: Break-even point is defined as a situation where a firm’s expenses and revenues…

Q: The break-even value calculation is similar to the calculation we use for theinternal rate of…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: Which ones identify the disadvantages of the payback rule? A. Very simple and easy to apply. B.…

A: Solution: Payback period is one of the decision making criteria in capital budgeting. It measures…

Q: What does the financial breakeven point shows?

A: A breakeven point is a situation of no loss no profit. The breakeven point is generally calculated…

Q: What is the meaning of break-even point?

A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Q: What is a possibe break-even point scenario in the resturant indurstry?

A: Break-even point is the point wherein revenues equals expenses or contribution equals fixed costs.…

Q: Which project has no rate of return?

A: Answer: IRR is a measure in capital budgeting used to measure the value of the predicted…

Q: Is a negative Sharpe ratio good or bad?  EXPLAIN

A: What sharpe ratio measure? It measure the excess return earn by portfolio over risk free rate at…

Q: How do I calculate the break even point per unit?

A: Break Even Point:                 Break Even Point is defined as the level where there is no profit…

Q: What is the conventional-payback method?

A: Conventional Payback Method

Q: What will be the revenue generated at the break-even point?

A: Break even point is a point wherein the firm does not earn any profit nor incurs any loss.

Q: What are some criticisms of the payback method?

A: Payback Period: Payback period is the period in which the project recovers its initial cost of the…

Q: What is breakup value?

A: Answer: Break-up value is nothing but a valuation that suggests the business will be split into…

Q: What is the present worth of a uniform series payment?

A: The present worth is the value of an asset at present considering an assumed discount rate, which…

Q: How can we determine the Break-Even Resale Value?

A: How to determine the Break -Even Resale Value?

Q: What is the future worth of a uniform series payment?

A: The future worth is the value of an asset at a predefined future date which increases at a specific…

Q: What is meant by the term break-even point?

A: Break-even analysis is a technique widely used by the production department. It helps to determine…