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How sensitive is OCF to changes in quantity sold

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Question - Consider a four-year project with the following information: initial fixed asset investment = $475,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $26; variable costs = $18; fixed costs = $195,000; quantity sold = 84,000 units; tax rate = 34%. How sensitive is OCF to changes in quantity sold?

Reference no: EM132787798

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