Consider a four-year project with the following information: initial fixed asset investment = $610,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $48; variable costs = $36; fixed costs = $285,000; quantity sold = 112,000 units; tax rate = 25 percent.
How sensitive is OCF to changes in quantity sold?
=(Price-VC)*(1-tax rate)
=48-36*(1-tax rate)
=12*(1-21%)
=9
Consider a four-year project with the following information: initial fixed asset investment = $610,000; straight-line depreciation...
Consider a four-year project with the following information: initial fixed asset investment = $575,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $36; variable costs = $17; fixed costs = $175,000; quantity sold = 84,000 units; tax rate = 34%. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) (Do not forget to include + or...
Consider a four-year project with the following information: initial fixed asset investment = $580,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $42; variable costs = $29; fixed costs = $255,000; quantity sold = 94,000 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) AOCFAQſ
Consider a four-year project with the following information: initial fixed asset investment = $570,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $40; variable costs = $27; fixed costs = $245,000; quantity sold = 88,000 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Consider a four-year project with the following information: initial fixed asset investment = $580,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $42; variable costs = $29; fixed costs = $255,000; quantity sold = 94,000 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) AOCFIAQ
Consider a four-year project with the following information: initial fixed asset investment = $585,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $43; variable costs = $30; fixed costs = $260,000; quantity sold = 97,000 units; tax rate = 25 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Consider a project with the following information: Initial fixed asset investment = $540,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $52; variable costs = $33; fixed costs = $222,000; quantity sold = 112,000 units; tax rate = 21 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Consider a four-year project with the following information: initial fixed asset investment = $375,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $56; variable costs = $23; fixed costs = $195,000; quantity sold = 84,000 units; tax rate = 34%. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) (Do not forget to include + or...
Consider a four-year project with the following information: initial fixed asset investment = $275,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $46; variable costs = $12; fixed costs = $195,000; quantity sold = 84,000 units; tax rate = 34%. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) (Do not forget to include + or...
Consider a four-year project with the following information: initial fixed asset investment = $375,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $56; variable costs = $23; fixed costs = $195,000; quantity sold = 84,000 units; tax rate = 34%. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) (Do not forget to include + or...
Consider a four-year project with the following information: initial fixed asset investment = $502,090; straight-line depreciation to zero over the four-year life; zero salvage value; price = $35; variable costs = $23; fixed costs = $188,913; quantity sold = 79,157 units; tax rate = 33 percent. Calculate the sensitivity of the OCF to changes in the quantity sold.