How sensitive is operating cash flow to changes

Reference no: EM131794650

Question: A 4 year project has product which sells for $25, has $16 in variable costs and $180,000 fixed costs.To undertake the project requires a $540,000 investment, which is depreciated straight line to zero over the 4 years. If the quantity sold = 50,000 units and the tax rate = 40%, how sensitive is the Operating Cash Flow to changes in quantity sold?

Reference no: EM131794650

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