Question: Consider a three-year project with the following information: Initial fixed asset investment =$685,000; straight-fine depreciation to zero over the 4-year life; zero salvage value; price

Consider a three-year project with the following information: Initial fixed asset investment =$685,000; straight-fine depreciation to zero over the 4-year life; zero salvage value; price =$38.99; variable costs =$28.01; fixed costs =$317,000; quantity sold =82,000 units; tax rate =24 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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Question 1 ( Question 1 options: Suppose you have the following 28-bit block: {0, 1, 1, 1, 0, 1, 1, 0, 0, 0, 1, 0, 1, 0, 0, 0, 0, 0, 1, 1, 1, 1, 0, 0, 1, 1, 0, 1}. Apply LS1 to the given 28-bit...

Consider a four - year project with the following information: initial fixed asset investment = 5 0 0 , 0 0 0 ; straight - line depreciation over the four - year life; zero salvage value; price = 3 1...

$680,000. Straight-line Consider a 4-year project with the following information. Initial fixed asset investment depreciation to zero over the 4-year life; zero salvage value. The tax rate = 23%. If...

Consider a three-year project with the following information: initial fixed asset investment = $685,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $38.99;...

Consider a three-year project with the following information: Initial fixed asset investment = $685,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $38.99;...

please show all steps and CALCULATION to arrive at the answers Consider a three-year project with the following information: initial fixed asset investment = $600,000; straight-line depreciation to...

please solve showing all the steps to arrive at the results Consider a three-year project with the following information: initial fixed asset investment - $600,000; straight-line depreciation to zero...

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;...

Consider a three-year project with the following information: initial fixed asset investment = $850,000, straight-line depreciation to zero over the five-year life: zero salvage value; price =...

1. Do all people have exactly the same number of bones? Explain your answer. 2. What bone gets broken if a person is strangled? 3. Name two bones that might get broken if someone punches you in the...

Inventory records for Marvin Company revealed the following: Number Unit Date Transaction of Units Cost Mar. 1 Beginning inventory 960 $7.28 Mar. 10 Purchase 550 7.78 Mar.16 Purchase 449 8.38 Mar.23...

How would a 5 W sales commission paid to saies personnel be classified in a manufacturing company? Flxed. product cost. Variable, product coss . Variable, period cost. Fixed, period cost.

when I should use backpropagation in ANN model is it after evaluation phase ? after observe the result of training, and find poor performance or even if the performance was good I have to implement...