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PLEASE SHOW 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;
PLEASE SHOW 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 soldStep by Step Solution
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