Sensitivity AnalysisConsider a project with the following information: Initial fixed asset investment = $485,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $41; variable costs = $24; fixed costs = $189,000; quantity sold = 90,000 units; tax rate = 23 percent. How sensitive is OCF to changes in quantity sold?
Sensitivity AnalysisConsider a project with the following information: Initial fixed asset investment = $485,000; straight-line depreciation...
Consider a three-year project with the following information: initial fixed asset investment = $705,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price = $39.31; variable costs = $28.25; fixed costs = $329,000; quantity sold = 86,000 units; tax rate = 23 percent. a. What is the OCF at the base-case quantity sold? OCF= b. What is the OCF at 87,000 units sold? OCF= c. How sensitive is OCF to changes in quantity sold?
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.
Consider a project with the following information: Initial fixed asset investment - $550,000 straight-line depreciation to zero over the 4-year life; zero salvage value: ole costs = $35: fixed costs = $228,000, quantity sold = 116,000 units tax rate = 23 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 project with the following information: Initial fixed asset investment = $495,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $43; variable costs = $26; fixed costs = $195,000; quantity sold = 94,000 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold?
Consider a project with the following information: Initial fixed asset investment = $525,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $49; variable costs = $30; fixed costs = $213,000; quantity sold = 106,000 units; tax rate = 23 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 = $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?
Consider a three-year project with the following information: initial fixed asset investment = $680,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $38.91; variable costs = $27.95; fixed costs = $314,000; quantity sold = 81,000 units; tax rate = 23 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 three-year project with the following information: initial fixed asset investment = $665,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $39.20; variable costs = $29.85; fixed costs = $315,000; quantity sold = 85,000 units; tax rate = 23 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 three-year project with the following Information: Initial fixed asset Investment = $730,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $39.71; variable costs = $28.55; fixed costs = $344,000, quantity sold = 91,000 units; tax rate = 23 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.) ΔOCEIΔα
Consider a three-year project with the following information: initial fixed asset investment = $665,000; straight-line depreciation to zero over the five-year life; zero salvage value; price $39.2O; variable costs $29.85; fixed costs = units; tax rate 23 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.) $315,000; quantity sold 85,000 ΔΟCF/ΔQ