Question: Consider a three-year project with the following information: Initial fixed asset investment =$715,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price
Consider a three-year project with the following information: Initial fixed asset investment =$715,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price =$39.47; variable costs =$28,37; fixed costs =$335,000; quantity sold =88,000 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.9. 32.16
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
