Consider a three-year project with the following information: initial fixed asset investment ($375,000;) straight-line depreciation to zero

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Consider a three-year project with the following information: initial fixed asset investment \($375,000;\) straight-line depreciation to zero over the three-year life; zero salvage value; price \($24\);

variable costs \($15;\) fixed costs \($175,000;\) quantity sold 110,000 units; tax rate 34 percent. How sensitive is OCF to changes in quantity sold?

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Fundamentals Of Corporate Finance

ISBN: 9780072313000

5th Edition

Authors: Stephen A Ross, Randolph W Westerfield

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