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Consider a four-year project with the following information: Initial fixed asset investment = $380,000; 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 = $380,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $54; variable costs = $42; fixed costs = $185,000; quantity sold = 90,000 units; tax rate = 34 percent.
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How sensitive is OCF to changes in quantity sold? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) |
OCF will by $ for every additional unit sold.
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