Question
Consider a four-year project with the following information: Initial fixed asset investment = $480,000; 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 = $480,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $37; variable costs = $23; fixed costs = $195,000; quantity sold = 90,000 units; tax rate = 34 percent.
| How sensitive is OCF to changes in quantity sold? |
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Personal Finance
Authors: Jane King, Mary Carey
2nd Edition
0198748779, 9780198748779
