Question: MC algo 113 OCF Sensitivity A 5year project is expected to generate annual sales of10,000 units at a price of $87 per unit and a


MC algo 113 OCF Sensitivity A 5year project is expected to generate annual sales of10,000 units at a price of $87 per unit and a variable cost of $58 per unit. The equipment necessary for the project will cost $405,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $245,000 per year and the tax rate is 40 percent. How sensitive is the operating cash ow to a $1 change in the per unit sales price
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
