Finance / July 17, 2018 / Alicia Franklin
A break-even analysis is a useful tool for determining at what point your company, or a new product or service, will be profitable. Said another way, it’s a financial calculation used to determine the number of products or services you need to sell to at least cover your costs. When you’ve broken even, you are neither losing money nor making money, but all your costs have been covered.
The enterprise value (EV) of the business is calculated by discounting the unlevered free cash flows (UFCFs) projected over the projection period and the terminal value calculated at the end of the projection period to their present values using the chosen discount rate (WACC).
There are two basic parts to the cost of a car loan the principal and the interest. The principal is the negotiated cost of the vehicle itself. The interest refers to the total amount of the costs accrued over the life of the loan based on the principal amount and the stated interest rate.
If, for example, you expect rates to rise, it may make sense to focus on shorter-duration investments (in other words, those that have less interest-rate risk). Or, in this sort of environment, you may want to focus on bonds that take on different types of risks, such as the Strategic Income Opportunities Fund, which is less affected by movements in interest rates.
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