Question: Consider a four-year project with the following information: initial fixed asset investment = $460,000; straight-line depreciation to zero over the four-year life; zero salvage value;
| Consider a four-year project with the following information: initial fixed asset investment = $460,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $28; variable costs = $18; fixed costs = $150,000; quantity sold = 76,000 units; tax rate = 32 percent. |
| How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places (e.g., 32.16).) |
| OCF/Q | $ |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
