Question
Consider a four-year project with the following information: initial fixed asset investment = $530,000; 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 = $530,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $24; variable costs = $14; fixed costs = $170,000; quantity sold = 83,000 units; tax rate = 30 percent. |
| How sensitive is OCF to changes in quantity sold? |
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Principles Of Finance
Authors: Besley, Scott Besley, Eugene F Brigham, Brigham
4th Edition
0324655886, 9780324655889
