Question
Consider a three-year project with the following information: initial fixed asset investment = $760,000; 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 = $760,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $40.19; variable costs = $28.91; fixed costs = $362,000; quantity sold = 97,000 units; tax rate = 24 percent. |
What is the OCF at the base-case quantity sold? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
What is the OCF at 98,000 units sold? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
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.) |
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