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Consider a three-year project with the following information: initial fixed asset investment = $875,000; straight-line depreciation to zero over the five-year life; zero salvage value;
Consider a three-year project with the following information: initial fixed asset investment = $875,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $34.25; variable costs = $22.65; fixed costs = $211,000; quantity sold = 97,000 units; tax rate = 40 percent. |
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How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
OCF/Q | $ |
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