Question: Consider a three-year project with the following information: Initial fixed asset investment =$690,000; straight-line depreciation to zero over the 4 -year life; zero salvage value:
Consider a three-year project with the following information: Initial fixed asset investment =$690,000; straight-line depreciation to zero over the 4 -year life; zero salvage value: price =$39.07; variable costs =$28,07; fixed costs =$320,000; quantity sold =83,000 units; tax rate =25 percent. How sensitive is OCF to changes in quantity sold? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16
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