2. 17. Sensitivity analysis [LO 11.1] Consider a four-year project with the following information: initial non-current asset

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2. 17.

Sensitivity analysis [LO 11.1] Consider a four-year project with the following information: initial non-current asset investment = $575 000;

straight-line depreciation to zero over the four-year life; zero salvage value; price = $29; variable costs = $19; fixed costs = $235 000;

quantity sold = 76 000 units; tax rate = 30 per cent. How sensitive is OCF to changes in quantity sold?

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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Question Posted: Oct 03, 2024 04:04 AM

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2. 17. Sensitivity analysis [LO 11.1] Consider a four-year project with the following information: initial non-current asset

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Fundamentals Of Corporate Finance

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