Calculate sensitivity of OCF to changes in quantity sold

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Reference no: EM13937618

Consider a four-year project with the following information: initial fixed asset investment = $495479; straight-line depreciation to zero over the four-year life; zero salvage value; price = $35; variable costs = $24; fixed costs = $189692; quantity sold = 78549 units; tax rate = 31 percent. Calculate the sensitivity of the OCF to changes in the quantity sold. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Reference no: EM13937618

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