Initial fixed asset investment

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Reference no: EM13763824

Consider a three-year project with the following information: initial fixed asset investment = $870,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $34.05; variable costs = $22.55; fixed costs = $210,000; quantity sold = 96,000 units; tax rate = 34 percent.

Required:

How sensitive is OCF to changes in quantity sold? (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16))

Reference no: EM13763824

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