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Consider a project with a life of 10 years with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the
Consider a project with a life of 10 years with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the 10-year life; zero salvage value; price = $34; variable costs = $16; fixed costs = $200,000; quantity sold = 98,000 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold? Multiple Choice $16.01 $9.97 $14.04 $18.11 $0.07
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