How sensitive is ocf to changes in quantity sold

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Reference no: EM132014242

Consider a 9-year project with the following information: initial fixed asset investment = $430,000; straight-line depreciation to zero over the 9-year life; zero salvage value; price = $32; variable costs = $17; fixed costs = $167,700; quantity sold = 98,943 units; tax rate = 33 percent. How sensitive is OCF to changes in quantity sold?

Reference no: EM132014242

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