Calculate sensitivity of ocf to changes in quantity sold

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Reference no: EM132037499

Consider a four-year project with the following information: initial fixed asset investment = $503086; straight-line depreciation to zero over the four-year life; zero salvage value; price = $35; variable costs = $24; fixed costs = $185112; quantity sold = 79214 units; tax rate = 33 percent. Calculate the sensitivity of the OCF to changes in the quantity sold.

(round answer to 2 decimal places)

Reference no: EM132037499

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