Question: Consider a liveyear project with the following information: initial fixed asset investment =$580,000; straight-line depreciation to zero ever the five-year life, zero salvage value: price
Consider a liveyear project with the following information: initial fixed asset investment =$580,000; straight-line depreciation to zero ever the five-year life, zero salvage value: price =$49.50/ unit: variable costs =$16.80/unit fixed costs =$250,000 per year: quantiy sold =100,000 units per year; tax rate = 25\%. Hew sensitive is OCF to changes in quantiy sold (le. how much does oCF chazye given an increase of one unin sold in a year? $24.63537.12$36.61$38.38$36.25
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