Question: Consider a three-year project with the following information: Initial fixed asset investment =$725,000; 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 =$725,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price =$39.63; variable costs =$28.49; fixed costs =$341,000; quantity sold =90,000 units; tax rate =22 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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