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Consider a project with a life of 3 years with the following information: initial fixed asset investment = $320,000; straight-line depreciation to zero over the
Consider a project with a life of 3 years with the following information: initial fixed asset investment = $320,000; straight-line depreciation to zero over the 3-year life; zero salvage value; price = $31; variable costs = $16; fixed costs = $172,800; quantity sold = 119,232 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold?
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$13.00
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$11.40
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$8.09
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$14.71
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$0.09
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