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Consider a five-year project with the following information: initial fixed asset investment = $525,000; straight-line depreciation to zero over the five-year life; zero salvage value;
Consider a five-year project with the following information: initial fixed asset investment = $525,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $42; variable costs = $35; fixed costs = $210,000; quantity sold = 75,000 units; tax rate = 34%.
How sensitive is OCF to changes in quantity sold? Q new is 125,000 units. (Do not round intermediate calculations. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
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