How sensitive is ocf to changes in quantity sold

Reference no: EM13263725

Consider a four-year project with the following information: initial fixed asset investment = $440,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $25; variable costs = $15; fixed costs = $130,000; quantity sold = 73,000 units; tax rate = 35 percent.

How sensitive is OCF to changes in quantity sold?

Reference no: EM13263725

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