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Consider a project with the following information: Initial fixed asset investment = $560,000; 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 = $560,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $56; variable costs = $37; fixed costs = $234,000; quantity sold = 120,000 units; tax rate = 25 percent. |
How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
OCF/Q=
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