Question
Consider a project with the following information: Initial fixed asset investment = $500,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price
Consider a project with the following information: Initial fixed asset investment = $500,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $44; variable costs = $28; fixed costs = $198,000; quantity sold = 96,000 units; tax rate = 23 percent. How sensitive is OCF to changes in quantity sold?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th International Edition
0321552113, 9780321552112
