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= Sensitivity Analysis Consider a project with the following information: Initial fixed asset investment = $655,000; straight-line depreciation to zero over the four-year life; zero salvage value; price - $28; variable costs $16; fixed costs $245,000; quantity sold 61,000 units; tax rate 21 percent. How sensitive is OCF to changes in quantity sold?

= Sensitivity Analysis Consider a project with the following information: Initial fixed asset investment = $655,000; straight-line depreciation to zero over the four-year life; zero salvage value; price - $28; variable costs $16; fixed costs $245,000; quantity sold 61,000 units; tax rate 21 percent. How sensitive is OCF to changes in quantity sold?

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
Problem 1PS
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Am. 121.

= Sensitivity Analysis Consider a project with the following information: Initial fixed asset investment = $655,000; straight-line depreciation to zero over the four-year life; zero salvage value; price - $28; variable costs $16; fixed costs $245,000; quantity sold 61,000 units; tax rate 21 percent. How sensitive is OCF to changes in quantity sold?
Transcribed Image Text:= Sensitivity Analysis Consider a project with the following information: Initial fixed asset investment = $655,000; straight-line depreciation to zero over the four-year life; zero salvage value; price - $28; variable costs $16; fixed costs $245,000; quantity sold 61,000 units; tax rate 21 percent. How sensitive is OCF to changes in quantity sold?
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