Question: 17. Sensitivity Analysis (LO1) Consider a four-year project with the following information: initial fixed asset investment =$475,000; straight-line depreciation to zero over the four-year life;

information: initial fixed asset investment =$475,000; straight-line depreciation to zero over the

17. Sensitivity Analysis (LO1) Consider a four-year project with the following information: initial fixed asset investment =$475,000; straight-line depreciation to zero over the four-year life; zero salvage value; price =$26; variable costs =$18; fixed costs =$195,000; quantity sold =84,000 units; tax rate =34%. How sensitive is OCF to changes in quantity sold? 18. Operating Leverage ( LO4) In the previous problem, what is the degree of operating leverage at the given level of output? What is the degree of operating leverage at the accounting break-even level of output

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