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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. 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.) % Answer is complete but not entirely correct. OCF Is 869,900 What is the OCF at 99,000 units sold? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Answer is complete but not entirely correct. OCF $ 881,200 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.) X Answer is complete but not entirely correct. AOCFIAQ $ 11.30
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