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

question 66

Multiple Choice

Consider a three-year project with the following information: initial fixed asset investment = $347,600; straight-line depreciation to zero over the three-year life; zero salvage value; price per unit = $49.99; variable costs per unit = $30.82; fixed costs per year = $187,000; quantity sold per year = 65,500 units; tax rate = 35 percent.How sensitive is OCF to an increase of one unit in the quantity sold?

• A)$12.46
• B)$11.67
• C)$8.67
• D)$9.08
• E)$13.40

---

Definitions:

Left-Sided Paralysis

The loss of muscle function and control on the left side of the body, typically resulting from brain damage or neurological disorders.

Muscle Atrophy

The wasting away or decrease in muscle mass, often due to lack of use, disease, or malnutrition.

Self-Concept

An individual’s perception of themselves, encompassing beliefs, feelings, and thoughts about one's abilities, appearance, and values.

Immobility

The lack of ability to move freely or easily, often as a result of a health condition or physical restraint.