Question: Problem 9-26 Sensitivity Analysis (LO 3] Consider a three-year project with the following information: initial fixed asset investment = $710,000; straight-line depreciation to zero over
Problem 9-26 Sensitivity Analysis (LO 3] Consider a three-year project with the following information: initial fixed asset investment = $710,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price = $39.39; variable costs = $28.31; fixed costs = $332,000; quantity sold = 87,000 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) AOCFIA
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
