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Unformatted text preview: $(1.00) then OCF would change by $58,500.00 ∆ NPV/ ∆ Q ∆ OCF/ ∆ VC Chapter 11 Question 17 Input area: Initial fixed assets $490,000 Life of project (yrs) 4 Price $32 Variable costs $19 Fixed costs $210,000 Quantity sold 110,000 Tax rate 34% Change in quantity 1,000 Output area: OCF at 110,000 units $846,850.00 OCF at 111,000 units $855,430.00 $8.58 ∆ OCF/ ∆ Q Chapter 11 Question 27 Input area: Quantity Initial investment Project life Fixed costs Variable costs Salvage value Selling price Net working capital Required return Tax rate b. Initial cost uncertainty Salvage value uncertainty Price uncertainty NWC uncertainty Output area: a. Depreciation #DIV/0! Aftertax salvage value $ OCF #DIV/0! NPV #DIV/0! b. Best case Worst case Initial cost $ $ Salvage value $ $ Price $ $ NWC $ $ Aftertax salvage value $ $ Best case OCF #DIV/0! Best case NPV #DIV/0! Worst case OCF #DIV/0! Worst case NPV #DIV/0!...
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 Spring '11
 dr.lee
 OCF, salvage value, aftertax salvage value

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