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We are evaluating a project that costs $837449, has an eight-year life, and has no salvage...

We are evaluating a project that costs $837449, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 55339 units per year. Price per unit is $36, variable cost per unit is $19, and fixed costs are $422995 per year. The tax rate is 35%, and we require a return of 18% on this project. In dollar terms, what is the sensitivity of OCF to changes in the variable cost per unit projection? (Round answer to 2 decimal places. Do not round intermediate calculations)

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jeff jeffy answered 1 year ago
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