Question: Consider a three-year project with the following information; initial fixed asset investment = $730,000; straight-line depreciation to zero over the five year life; zero salvage

Consider a three-year project with the following information; initial fixed asset investment = $730,000; straight-line depreciation to zero over the five year life; zero salvage value; price = $31.75; variable costs = $19.50; fixed costs = $185,000; quantity sold = 80,000 units; tax rate = 34 percent. How sensitive is OCF to changes in quantity sold?

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