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Consider a project with a life of 3 years with the following information: initial fixed asset investment = $420,000; straight-line depreciation to zero over the
Consider a project with a life of 3 years with the following information: initial fixed asset investment = $420,000; straight-line depreciation to zero over the 3-year life; zero salvage value; price = $39; variable costs = $17; fixed costs = $247,800; quantity sold = 121,422 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? Multiple Choice
$21.57
$16.72
$11.87
$19.06
$0.06
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