Consider a four-year project with the following information: initial fixed asset investment = $385,000; straight-line depreciation to
Question:
Consider a four-year project with the following information: initial fixed asset investment = $385,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $26; variable costs = $17; fixed costs = $395,000; quantity sold = 73,000 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold?
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Using the tax shield approach the OCF at 73000 units will be ...View the full answer
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Related Book For 
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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