Question
Consider a 3-year project with the following information: initial fixed asset investment = $380,000; straight-line depreciation to zero over the 3-year life; zero salvage value;
Consider a 3-year project with the following information: initial fixed asset investment = $380,000; straight-line depreciation to zero over the 3-year life; zero salvage value; price = $29; variable costs = $14; fixed costs = $117,800; quantity sold = 47,120 units; tax rate = 32 percent. The sensitivity of OCF to changes in quantity sold is $ ?
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Risk Management And Financial Institutions
Authors: John C. Hull
3rd Edition
1118269039, 9781118269039
