Question: MC algo 11-3 OCF Sensitivity A 9 year project is expected to generate annual sales of 9,500 units at a price of $82 per unit

 MC algo 11-3 OCF Sensitivity A 9 year project is expected

MC algo 11-3 OCF Sensitivity A 9 year project is expected to generate annual sales of 9,500 units at a price of $82 per unit and a variable cost of $53 per unit The equipment necessary for the project will cost $365,000 and will be depreciated on a straight-line basis over the life of the project. ixed costs are $220,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price? Multiple Choice $5,643 $6.270 $4142 $4,517 $4,893 Next> CPrey 31 of 38 e here to search

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!