Question: Consider a 4-year project with the following information: initial fixed asset investment = $410,000; straight-line depreciation to zero over the 4-year life; zero salvage value;
Consider a 4-year project with the following information: initial fixed asset investment = $410,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $29; variable costs = $14; fixed costs = $221,400; quantity sold = 141,696 units; tax rate = 31 percent. How sensitive is OCF to changes in quantity sold? (Do not round your intermediate calculations.)
A.) $11.80
B.) $7.35
C.) $0.10
D.) $10.35
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