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Consider a four-year project with the following information: initial fixed asset investment = $560,000; 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 = $560,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $38; variable costs = $26; fixed costs = $235,000; quantity sold = 82,000 units; tax rate = 25 percent. How sensitive is OCF to changes in quantity sold? Show how to do with financial calculator. Show how to do with financial calculator.
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