Which of the following mathematical expressions is used while calculating the value of a firm using the income approach?
The present value of the free cash flows (FCF) that a business is expected to produce over the next T years – The present value of all free cash flows after year T – The value of all of the nonoperating assets in the firm
The present value of the free cash flows (FCF) that a business is expected to produce over the next T years – The present value of all free cash flows after year T + The value of all of the nonoperating assets in the firm
The present value of the free cash flows (FCF) that a business is expected to produce over the next T years + The present value of all free cash flows after year T + The value of all of the nonoperating assets in the firm
The present value of the free cash flows (FCF) that a business is expected to produce over the next T years + The present value of all free cash flows after year T – The value of all of the nonoperating assets in the firm.
2. Atamony makes circuit boards and markets them to electronic goods manufacturers. The firm has nonsalary fixed costs of $112,000 and salary costs of $64,250. Each circuit board is sold at a price of $69 and involves variable costs of $46 per unit. What is the break-even point for Atamony? (Round to nearest whole unit.)
7,663 circuit boards
5,105 circuit boards
6,237 circuit boards
2,714 circuit boards