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

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
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Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
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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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