Initial fixed asset investment and zero salvage value

Assignment Help Financial Management

Reference no: EM13909044

Consider a four-year project with the following information: initial fixed asset investment = $500,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $35; variable costs = $26; fixed costs = $200,000; quantity sold = 80,000 units; tax rate = 35 percent.

How sensitive is OCF to changes in quantity sold? (Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13909044

Questions Cloud

Design and implement an algorithm that utilizes particles : Design and implement an algorithm that utilizes particles. The application is your choice based on what was presented in class - Description of what your program does

Find the rate at which potential customers are turned away : Find the steady-state distribution of the number of customers in the shop. Find the rate at which potential customers are turned away.

Assume that piaggio is budgeted to operate : Assume that Piaggio is budgeted to operate at 80% of capacity but actually operates at 75% of capacity.

Effect of stunting growth later in life : Several male athletes have reported having growth spurts well into their college years. Why is this phenomenon more likely for males then females?

Initial fixed asset investment and zero salvage value : Consider a four-year project with the following information: initial fixed asset investment = $500,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $35; variable costs = $26; fixed costs = $200,000; quantit..

Intend to retire-accumulate the necessary funds : You are currently 30 years old. You intend to retire at age 60, and you want to be able to receive a 20-year, $100,000 beginning-of-the-year annuity, with the first payment to be received on your 60th birthday. If you expect your investments to earn ..

Find mean time t for population in original markov process : Find the mean time T for the population in the original Markov process to die out. Note: We have seen before that removing transitions from a Markov chain or process.

Suggest creative methods check employees throughout the year : Determine two challenges managers may encounter when evaluating a virtual employee's performance; then, suggest a plan for overcoming each of these challenges. Justify your response.

How much does jacob produce in one day : Lance produces 20 more than 4 times what Jacob can produce in one day. If Lance's total production for the day is 360, how much does Jacob produce in one day

User Account

All Pages