Question
Consider a four-year project with the following information: Initial fixed asset investment = $450,000; 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 = $450,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $26; variable costs = $16; fixed costs = $140,000; quantity sold = 74,000 units; tax rate = 34 percent. |
| How sensitive is OCF to changes in quantity sold? |
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Finance With Monte Carlo
Authors: Ronald W. Shonkwiler
2013th Edition
146148510X, 978-1461485100
