Consider a four-year project with the following information: Initial fixed asset investment = $655,000; straight-line depreciation to

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Consider a four-year project with the following information: Initial fixed asset investment = $655,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $28; variable costs = $16; fixed costs = $245,000; quantity sold = 61,000 units; tax rate = 21 percent. How sensitive is OCF to changes in quantity sold?

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Fundamentals Of Corporate Finance

ISBN: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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