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Consider a project with a life of 7 years with the following information initial fixed asset investment $330,000: straight-line depreciation to zero over the 7-year
Consider a project with a life of 7 years with the following information initial fixed asset investment $330,000: straight-line depreciation to zero over the 7-year life, zero salvage value, price = $28: variable costs = $18; fixed costs = $122,100; quantity sold = 69,597 units, tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? Calculate OCF with data given, and also for an arbitrary quantity, say 1000 units more Sensitivity is (OCF2 - OCFW/Q2 01. This is OCF per unit change in Q Multiple Choice $8.66 $760 O $8.66 O $7.60 $0.13 O $9.80 o $5.40
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