Question: 2. 17. Sensitivity analysis [LO 11.1] Consider a four-year project with the following information: initial non-current asset investment = $575 000; straight-line depreciation to zero

2. 17.

Sensitivity analysis [LO 11.1] Consider a four-year project with the following information: initial non-current asset investment = $575 000;

straight-line depreciation to zero over the four-year life; zero salvage value; price = $29; variable costs = $19; fixed costs = $235 000;

quantity sold = 76 000 units; tax rate = 30 per cent. How sensitive is OCF to changes in quantity sold?

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