How sensitive is ocf to changes in quantity sold

Assignment Help Financial Management

Reference no: EM131519221

Consider a four-year project with the following information: initial fixed asset investment = $440,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $25; variable costs = $15; fixed costs = $130,000; quantity sold = 73,000 units; tax rate = 35 percent. How sensitive is OCF to changes in quantity sold?

Reference no: EM131519221

Questions Cloud

Which the broker claims is fantastic bargain : Your friend Marvin is excited because he believes he’s found an investment bargain. Marvin knows you’re finance major and has asked your opinion of opportunity.

Give a brief history about windows systems : Give a brief history about Windows systems and what are the minimum system/hardware requirements for Windows 10?

What type of claim is the author of the article making : What type of claim is the author of the article making? Name two reasons you think the author is making this type of claim

Describe causes and consequences of mortgage default crisis : Describe the causes and consequences of the 2007 mortgage default crisis. What could the government have done to prevent this crisis?

How sensitive is ocf to changes in quantity sold : How sensitive is OCF to changes in quantity sold?

Discuss the trade discount terms : Feast'N'Run provides a contract catering service to several university and college campuses. One of its main suppliers has offered trade discount terms.

Calculate the after-tax cost of debt for company : calculate the AFTER-TAX cost of debt for Company E.

Calculate operating breakeven point in units : Calculate the operating breakeven point in units. Use the degree of operating leverage? (DOL) formula to calculate DOL.

Data transmission technologies : Define each protocol and describe at least two data transmission technologies associated with the protocol. Include the bandwidth limitations of each technology

User Account

All Pages