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Consider a project with a life of 8 years with the following information: initial fixed asset investment =$450,000; straight-line depreciation to zero over the 8-year
Consider a project with a life of 8 years with the following information: initial fixed asset investment =$450,000; straight-line depreciation to zero over the 8-year life; zero salvage value; price =$33; variable costs =$17; fixed costs =$189,000; quantity sold = 103,950 units; tax rate =25 percent. How sensitive is OCF to changes in quantity sold? Multiple Choice $13.68 $12.00 $0.08 $8.52 $15.48
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