Consider a 6-Year Project with the Following Information: Initial Fixed

question 33

Multiple Choice

Consider a 6-year project with the following information: initial fixed asset investment = $460,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $34; variable costs = $19; fixed costs = $188,600; quantity sold = 90,528 units; tax rate = 32 percent.What is the sensitivity of OCF to changes in quantity sold?

• A)$10.20 per unit
• B)$11.16 per unit
• C)$11.38 per unit
• D)$12.33 per unit
• E)$12.54 per unit

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Definitions:

Social Deficiencies

Lacks or shortcomings in one's ability to perform in social settings or maintain successful social relationships.

Attachment Style

Patterns of forming emotional bonds and relating to others, developed in early childhood and persisting into adulthood.

Avoidant

Referring to a behavioral or psychological strategy of evading or withdrawing from unwanted situations or emotional experiences.

Passionate

Having or expressing strong emotions or beliefs towards something or someone, often characterized by enthusiasm and intense interest.