BMIT2723 - Week 2

A company is considering a project that requires an initial investment of $100,000. The Year 1 Cash Flow is $30,000 and expected annual growth rate is 8%. The company's required rate of return (discount rate) is 10%.
What is the NPV of the project in the case that is a 5 years project?

Tips: Please include the $ in your answer with zero decimal place

(a)  

Should you invest in the project if the NPV is $15,000?

• Yes, because NPV >0

• Yes, because NPV <0

• No, because NPV >0

• No, because NPV <0

Given the following data set:
2,5,7,10,12,14,15,18,20,25,30

What is the value of the third quartile (Q3) of the data set?

• 18

• 20

• 14

• 25

You are given a dataset showing monthly sales figures for a retail store over the past 3 years. What is the best type of chart to visualize this time series data?

• Pie Chart

• Bar Chart

• Line Chart

• Histogram

A company produces and sells a product with the following information:

Fixed Costs: $10,000

Selling Price per Unit: $50

Cost per Unit: $30

Quantity Sold: 600

What is the breakeven unit cost if other variable remain unchanged. Kindly use excel formula to find the answer.

Tips: Please include the $ in your answer with zero decimal place

(a)