Consider a project with the following information: 

initial investment $750,000; straight-line depreciation to zero over five-year life; $25,000 salvage value; price per unit $76; variable cost per unit $36; annual fixed costs $11,000; annual quantity sold 15,000 units; Tax Rate 20%. What is the sensitivity rate of Operating Cash Flow to fixed costs?

Answer rating: 100% (QA)

To calculate the sensitivity rate of Operating Cash Flow OCF to fixed costs we need to first determi... View the full answer