Calculate the sensitivity of the operating cash flow

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Consider a 4-year project with the following information:

Initial fixed asset investment R450 000

Depreciation Straight-line to zero over the 3-year live

Salvage value Zero

Selling price R28

Variable cost R19 per unit

Fixed cost R190 000

Quantity sold 110 000

Tax rate 28%

Question 1: Calculate the sensitivity of the operating cash flow (OCF) when the quantity sold is 111 000 and not 110 000? Provide the answer as a Rand figure and as a percentage - both to two decimal places.

Reference no: EM132494438

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