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Consider a four-year project with the following information: initial fixed asset investment = $486,000; 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 = $486,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $37; variable costs = $32; fixed costs = $206,000; quantity sold = 95,000 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.)
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