Straight-line depreciation to zero over the four-year life

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Reference no: EM131027169

Consider a four-year project with the following information: Initial fixed asset investment = $460,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $28; variable costs = $18; fixed costs = $150,000; quantity sold = 76,000 units; tax rate = 32 percent.

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

Reference no: EM131027169

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