Question: 12. Sensitivity Analysis Consider a four-year project with the following information: initial fixed asset investment =$385,000; straight-line depreciation to zero over the four-year life; zero
12. Sensitivity Analysis Consider a four-year project with the following information: initial fixed asset investment =$385,000; straight-line depreciation to zero over the four-year life; zero salvage value; price =$26; variable costs =$17; fixed costs =$395,000; quantity sold =73,000 units; tax rate =22 percent. How sensitive is OCF to changes in quantity sold
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