Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider a four-year project with the following information: initial fixed asset investment = $475,000; 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 = $475,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $26; variable costs = $18; fixed costs = $195,000; quantity sold = 84,000 units; tax rate = 34%.
How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)
OCF/Q $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started