Consider a project with a life of 6 years with the following information: initial fixed asset...
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Consider a project with a life of 6 years with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $28; variable costs = $17; fixed costs = $196,000; quantity sold = 117,600 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold? Consider a project with a life of 6 years with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $28; variable costs = $17; fixed costs = $196,000; quantity sold = 117,600 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold?
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SOLUTION To determine the sensitivity of Operating Cash Flow OCF to changes in quantity sold we need ... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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