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A company is considering a five-year project with the following information: initial fixed asset investment = $582,000; straight-line depreciation to zero over the six-year life;
A company is considering a five-year project with the following information: initial fixed asset investment = $582,000; straight-line depreciation to zero over the six-year life; zero salvage value; price = $41.65/unit; variable costs = $18.52/unit; fixed costs = $238,000 per year; quantity sold = 100,000 units per year; tax rate = 25%. How sensitive is OCF to changes in quantity sold (i.e., wha is the change in OCF given an increase of one unit sold in a year)? $17.05 $17.65 $17.50 $17.20 $17.35
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