Consider a four-year project with the following information: initial fixed asset investment = $585,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $43; variable costs = $30; fixed costs = $260,000; quantity sold = 97,000 units; tax rate = 25 percent.

  

How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer rating: 100% (QA)

To determine how sensitive the Operating Cash Flow OCF is to changes in quantity sold we need to cal... View the full answer