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Consider a 5-year project with an initial fixed asset investment of $350,000, straight-line depreciation to zero over the project's life, a zero salvage value, a

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Consider a 5-year project with an initial fixed asset investment of $350,000, straight-line depreciation to zero over the project's life, a zero salvage value, a selling price of $29, variable costs of $21, fixed costs of $139, 700, a sales quantity of 110,000 units, and a tax rate of 35 percent. What is the sensitivity of OCF to changes in quantity sold? A) $6.16 per unit B) $3.38 per unit C) $8.33 per unit D) $5.20 per unit E) $7.54 per unit At an output level of 18, 500 units, you calculate that the degree of operating leverage is 1.64. What will the percentage change in operating cash flow if the new output level is 20,000 units? A) 13.30 percent B) 6.17 percent C) 21.08 percent D) 1.77 percent E) 17.73 percent Home & More is considering a project with cash flows of -$375,000, $133, 500, -$35, 600, $244, 700, and 271,000 for years 0 to 4. Should this project be accepted based on the combination approach to the modified rate of return if both the discount rate and the reinvestment rate are 16 percent? Why or why not? No: The MIRK is 12.91 percent. No: The MIRK is 14.78 percent. Yes: The MIRR is 14.78 percent. No: The MIRR is 17.42 percent. Yes: The MIRR is 17.42 percent. You have gathered this information on JJ Enterprises

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