Question: Consider a three-year project with the following information: Initial fixed asset investment =$735,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price
Consider a three-year project with the following information: Initial fixed asset investment =$735,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $39.79; variable costs =$28,61; fixed costs =$347,000; quantity sold =92,000 units; tax rate =24 percent What is the OCF at the base-case quantity sold? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32. What is the OCF at 93,000 units sold? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.9., 32 . How sensitive is OCF to changes in quantity sold? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9. 32.16
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