Question
Consider a four-year project with the following information: initial fixed asset investment = $610,000; 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 = $610,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $48; variable costs = $36; fixed costs = $285,000; quantity sold = 112,000 units; tax rate = 25 percent.
How sensitive is OCF to changes in quantity sold?
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Digital Systems Principles And Application
Authors: Ronald Tocci, Neal Widmer, Gregory Moss
12th Edition
0134220137, 978-0134220130
