Question: Consider a four-year project with the following information: initial fixed asset investment = $560,000; 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 = $560,000; straight-line depreciation to zero
over the four-year life; zero salvage value; price = $28; variable costs = $20; fixed costs = $200,000; quantity sold = 86,000 units; tax
rate = 35 percent.
How sensitive is operating cash flow to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)
AOCF I AQ
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rate -35 percect How senstive hoperating cash flow to changes in quantify toldp (Do not round intermediete calculations. Round the finai answer to 2 decimnl pleces. Omit 5 sign in your response.) AOCFido is
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