Question
Consider a project with a life of 4 years with the following information: initial fixed asset investment = $440,000; straight-line depreciation to zero over the
Consider a project with a life of 4 years with the following information: initial fixed asset investment = $440,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $27; variable costs = $15; fixed costs = $250,800; quantity sold = 150,480 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
