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Please only give answers and explanations for the 3 questions asked in the problem. I just need to check my work! 3. Consider a three-year
Please only give answers and explanations for the 3 questions asked in the problem. I just need to check my work!
3. Consider a three-year project with the following information: initial fixed asset investment =$698,000; straight-line depreciation to zero over the four-year life; zero salvage value; price =$34.15; variable costs =$22.60; fixed costs =$210,500; quantity sold =96,500 units; tax rate =40 percent. Required: What is the OCF at the base-case quantity sold? What is the OCF at 97,500 units sold? How sensitive is OCF to changes in quantity sold Step by Step Solution
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