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Consider a four-year project with the following Information: Initlal fixed asset Investment = $605,000; stralght-line depreclation to zero over the four-year life; zero salvage value; price = $47; varlable costs $34; fixed costs = $280,000; quantity sold 109,000 units; tax rate = 24 percent. %3D %3D %3D !! How sensitive Is OCF to changes In quantity sold? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) AOCFIAQ 33.30

Consider a four-year project with the following Information: Initlal fixed asset Investment = $605,000; stralght-line depreclation to zero over the four-year life; zero salvage value; price = $47; varlable costs $34; fixed costs = $280,000; quantity sold 109,000 units; tax rate = 24 percent. %3D %3D %3D !! How sensitive Is OCF to changes In quantity sold? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) AOCFIAQ 33.30

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Consider a four-year project with the following Informatlon: Initlal fixed asset Investment $605,000, stralght-line depreclation to zero over the four-year life; zero salvage value; price = $47, varlable costs = tax rate 24 percent. $34, fixed costs = $280,000; quantity sold = 109,000 units, How sensitive Is OCF to changes In quantity sold? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) AOCFIAQ 33.30
Transcribed Image Text:Consider a four-year project with the following Informatlon: Initlal fixed asset Investment $605,000, stralght-line depreclation to zero over the four-year life; zero salvage value; price = $47, varlable costs = tax rate 24 percent. $34, fixed costs = $280,000; quantity sold = 109,000 units, How sensitive Is OCF to changes In quantity sold? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) AOCFIAQ 33.30
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