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Consider a project with a life of 6 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 6 years with the following information: initial fixed asset investment = $440,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $37; variable costs = $14; fixed costs = $198,000; quantity sold = 83,160 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? |
Multiple Choice
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$0.06
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$22.55
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$17.48
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$12.41
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$19.93
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