How sensitive is OCF to changes in quantity sold

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Reference no: EM131059104

Consider a four-year project with the following information: initial fixed asset investment = $450,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $26; variable costs = $16; fixed costs = $140,000; quantity sold = 74,000 units; tax rate = 34 percent.

How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

ΔOCF/ΔQ $

Reference no: EM131059104

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