Consider a project with a life of 7 years with the following information: Initial fixed asset...
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Consider a project with a life of 7 years with the following information: Initial fixed asset Investment = $400,000, straight-line depreciation to zero over the 7-year life; zero salvage value; price $38, varlable costs = $14; fixed costs $136,000; quantity sold 72,080 units; tax rate = 24 percent. How sensitive Is OCF to changes in quantity sold? = = Consider a project with a life of 7 years with the following information: Initial fixed asset Investment = $400,000, straight-line depreciation to zero over the 7-year life; zero salvage value; price $38, varlable costs = $14; fixed costs $136,000; quantity sold 72,080 units; tax rate = 24 percent. How sensitive Is OCF to changes in quantity sold? = =
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To determine how sensitive Operating Cash Flow OCF is to changes in quantity sold we need to calcula... View the full answer
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date:
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