Question: Consider a five-year project with the following information: initial fixed asset investment =5580,000; straight-ine depreciation to zero over the five-year life; zero salvage value; price
Consider a five-year project with the following information: initial fixed asset investment =5580,000; straight-ine depreciation to zero over the five-year life; zero salvage value; price =$49.50 /unit; variable costs =$16.80/ unit fixed costs =$250,000 per year; quantity sold =100,000 units per year; tax rate =25%. How sensitive is OCF to changes in quantify sold f.e. how much does ociF change given an increase of one unit sold in a year)? $24.53$37.12$36.61$38.38$36.25
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