Sensitivity of the ocf to changes in the quantity sold

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Reference no: EM131541263

Consider a four-year project with the following information: initial fixed asset investment = $488892; straight-line depreciation to zero over the four-year life; zero salvage value; price = $35; variable costs = $22; fixed costs = $198153; quantity sold = 78976 units; tax rate = 30 percent. Calculate the sensitivity of the OCF to changes in the quantity sold.

Reference no: EM131541263

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