Question: Consider a project with the following information: Initial fixed asset investment = $495,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price

Consider a project with the following information: Initial fixed asset investment = $495,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $43; variable costs = $26; fixed costs = $195,000; quantity sold = 94,000 units; tax rate = 22 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.) AOCFIA
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
