FIN MISC

FIN MISC Evaluating Project Economics and Capital Rationing Last document update:   ago

Learning Objectives 1. Explain and be able to demonstrate how variable costs and fixed costs affect the volatility of pretax operating cash flows and accounting operating profits. 2. Calculate and distinguish between the degree of pretax cash flow operating leverage and the degree of accounting operating leverage. 3. Define and calculate the pretax operating cash flow and accounting operating profit break-even points and the crossover levels of unit sales for a project. 4. Define sensitiv...