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LDA's project requires an initial investment of $10,000, straight-line depreciable to zero over 4 years. The discount rate is 10%. The tax rate is 34%.
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LDA's project requires an initial investment of $10,000, straight-line depreciable to zero over 4 years. The discount rate is 10%. The tax rate is 34%. Additional information for variables with forecast error are shown below. Variables can bounce between lower and upper bound independently from each other.
Base Lower Upper Case Bound Bound Unit Sales 3,000 2,750 3,250 Price/unit $14 $13 $16 Variable cost/unit $9 $8 $10 Fixed costs $4,500 $4,000 $5,000 What is the best case OCF for the Project?
$17,234
$10,420
$15,370
$14,842
$16,162
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