QUESTION
111. Consider a 3-year project with the following information: initial fixed asset investment = $770,000; straight-line
Category: Business
Subject: Finance
Due Date: 02/03/2016
Question Asked: 2016-02-03 03:36:57
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User: LightspeedLearning
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111. Consider a 3-year
project with the following information: initial fixed asset investment =
$770,000; straight-line depreciation to zero over the 3-year life; zero salvage
value; price = $34.99; variable costs = $23.16; fixed costs = $245,000;
quantity sold = 94,500 units; tax rate = 35 percent. How sensitive is OCF to an
increase of one unit in the quantity sold?
A. $7.69
B. $8.38
C. $8.67
D. $9.97
E. $11.83
AVAILABLE ANSWERS
111. Consider a 3-year project with the following information: initial fixed asset investment = $770,000; straight-line
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Posted on 2016-02-03 03:36:57
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earnings: $1.10
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Preview:
...vage value; price = $34.99; variable costs = $23.16; fixed costs = $245,000; quantity...
The full tutorial is about 60 words long.