Question: Question 5 (1 point) Consider a three-year project with the following information: initial fixed asset investment = $1,000,000; straight-line depreciation to zero over the four-year
Question 5 (1 point) Consider a three-year project with the following information: initial fixed asset investment = $1,000,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $50; variable costs $30; fixed costs $250,000: quantity sold = 100,000 units; tax rate= 40 percent. How sensitive is operating cash flow to a one dollar change in sales price? = = $1,700,000 $100,000 O $60,000 $250,000 $5,000,000
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