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December 19, 2014

Homework Help: finance

Posted by Tuty on Sunday, August 17, 2008 at 9:15pm.

Consider a 2 yr project with initial fixed asset investment=$495,000, straight line depreciation to zero over the 2 yr life, zero salvage value, selling price =$39, variable costs=$20. fixed costs=$210,000, quantity sold=150,000 units, tax rate=31%. How sensitive is (OCF) to changes in quantity sold?

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