Hers the problem:consider a 2 year project with this situation.
intial fixed assetinvestment =$450,000
straight-line depreciation to zero onver the 2 year life
zero salavage value
selling price =$39
variable costs=$20
fixed costs=$210,000
quanlity sold=150,000 units
tax rate=31%.
How sensitive is Operating Cash Flow(OCF) to changes in quanity sold? State the answer in dollar amount.
I have no clue how to do this. I hope someone can help me.
