Calculate ensitivity of OCF to changes in the quantity sold

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Reference no: EM13937454

Consider a four-year project with the following information: initial fixed asset investment = $484680; straight-line depreciation to zero over the four-year life; zero salvage value; price = $33; variable costs = $23; fixed costs = $181848; quantity sold = 78395 units; tax rate = 33 percent. Calculate the sensitivity of the OCF to changes in the quantity sold.

Reference no: EM13937454

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