Question
Consider a project with a life of 7 years with the following information: initial fixed asset investment = $310,000; straight-line depreciation to zero over the
Consider a project with a life of 7 years with the following information: initial fixed asset investment = $310,000; straight-line depreciation to zero over the 7-year life; zero salvage value; price = $32; variable costs = $19; fixed costs = $167,400; quantity sold = 103,788 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
