Question: Consider a three - year project with the following information: Initial fixed asset investment = $ 7 2 0 , 0 0 0 ; straight
Consider a threeyear project with the following information: Initial fixed asset investment $;
straightline depreciation to zero over the year life; zero salvage value; price $; variable costs
$; fixed costs $; quantity sold units; tax rate percent.
What is the OCF at the basecase quantity sold?
Note: Do not round intermediate calculations and round your answer to the nearest whole number,
eg
OCF
What is the OCF at units sold?
Note: Do not round intermediate calculations and round your answer to the nearest whole number,
eg
OCF
How sensitive is OCF to changes in quantity sold?
Note: Do not round intermediate calculations and round your answer to decimal places, eg
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