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Consider a four-year project with the following information: initial fixed asset investment = $492,000; 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 = $492,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $43; variable costs = $36; fixed costs = $212,000; quantity sold = 101,000 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 $
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