Question: consider a project with the following information: initial fixed asset investment = $555,000; straight line depreciation to zero over the 4-year life; zero salvage value;
consider a project with the following information: initial fixed asset investment = $555,000; straight line depreciation to zero over the 4-year life; zero salvage value; price = $55; variable costs = $39; fixed costs = $231,000; quantity sold = 118,000 units; tax rate = 24 percent. how sensitive is ocf to changes in quantity sold?
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