Consider a four year project with the following information Initial fixed asset investment $400000 straight line depreciation to zero over the four year life zero salvage value price
Consider a fouryear project with the following information: Initial fixed asset investment = $400,000; straightline depreciation to zero over the fouryear life; zero salvage value; price = $20; variable costs = $12; fixed costs = $100,000; quantity sold = 70,000 units; tax rate = 30 percent. How sensitive is OCF to changes in quantity sold?
Apr 11 2020 View more View Less
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