How sensitive is ocf to changes in quantity sold

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Reference no: EM131900667

Consider a four-year project with the following information: initial fixed asset investment = $540,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $25; variable costs = $16; fixed costs = $180,000; quantity sold = 84,000 units; tax rate = 32 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places (e.g., 32.16).)

ΔOCF/ΔQ $ ( )

Reference no: EM131900667

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