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Consider a three-year project with the following information: initial fixed asset investment = $347,600; straight-line depreciation to zero over the three-year life; zero salvage value;
Consider a three-year project with the following information: initial fixed asset investment = $347,600; straight-line depreciation to zero over the
three-year life; zero salvage value; price per unit = $49.99; variable costs per unit = $30.82; fixed costs per year = $187,000; quantity sold per
year = 65,500 units; tax rate = 21 percent. How sensitive is OCF to an increase of one unit in the quantity sold?
Consider a three-year project with the following information: initial fixed asset investment = $347,600; straight-line depreciation to zero over the
three-year life; zero salvage value; price per unit = $49.99; variable costs per unit = $30.82; fixed costs per year = $187,000; quantity sold per
year = 65,500 units; tax rate = 21 percent. How sensitive is OCF to an increase of one unit in the quantity sold?
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