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Consider a four-year project with the following information: Initial fixed asset investment = $575,000; straight-line depreciation to zero over the four-year life; zero salvage value;
Consider a four-year project with the following information: Initial fixed asset investment = $575,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $29; variable costs = $19; fixed costs = $235,000; quantity sold = 76,000 units; tax rate = 21 percent. |
How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
CHAP 11 Help Save & Exit Submit Check my work 3 Consider a four-yea proj w he olkowing inforalio Ia fixed assel investmeril $575,000stIne depreclation to zero over the four-year Ife, zero salvage value, price $29: vaiabk cosls $19: ixed cosls $235,000 quanlity sokl- 76,000 unils tax rate 21 peicent 10 points How sensitive is OCF to changes in quantity sokd? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16
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