Question
Consider a three-year project with the following information: Initial fixed asset investment = $765,000; straight-line depreciation to zero over the 6-year life; zero salvage value;
Consider a three-year project with the following information: Initial fixed asset investment = $765,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $40.27; variable costs = $28.97; fixed costs = $365,000; quantity sold = 98,000 units; tax rate = 25 percent. How sensitive is OCF to changes in quantity sold?
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
