Straight-line depreciation to zero over the four-year life

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Consider a three-year project with the following information: initial fixed asset investment = $702,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $34.35; variable costs = $22.70; fixed costs = $211,500; quantity sold = 97,500 units; tax rate = 40 percent.

Required:

How sensitive is OCF to changes in quantity sold?

Reference no: EM13914948

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