Question: Consider a four-year project with the following information: Initial fixed asset investment =$635,000; straight-line depreclation to zero over the four-year life; zero salvage value; price
Consider a four-year project with the following information: Initial fixed asset investment =$635,000; straight-line depreclation to zero over the four-year life; zero salvage value; price =$53; variable costs =$44; fixed costs =$310,000; quantity sold =127,000 units; tax rate =25 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.) Consider a four-year project with the following information: Initial fixed asset investment =$635,000; straight-line depreclation to zero over the four-year life; zero salvage value; price =$53; variable costs =$44; fixed costs =$310,000; quantity sold =127,000 units; tax rate =25 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.)
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