How sensitive is OCF to changes in quantity sold
Question # 00767732
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Updated on: 06/26/2020 03:57 AM Due on: 07/02/2020
Consider a three-year project with the following information: initial fixed asset investment = $674,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $32.95; variable costs = $22.00; fixed costs = $204,500; quantity sold = 90,500 units; tax rate = 40 percent.
Required:
How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
ΔOCF/ΔQ_________________________ $
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