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Consider a four-year project with the following information: Initial fixed asset investment = $605,000; straight-line depreciation to zero over the four-year life; zero salvage
Consider a four-year project with the following information: Initial fixed asset investment = $605,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $47; variable costs = $34; fixed costs = $280,000; quantity sold = 109,000 units; tax rate = 24 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.) AOCF/AQ
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