Question: Consider a 10-year project with the following information: Initial fixed asset investment = $1,500,000 Straight-line depreciation to zero over the 10-year life Zero salvage value

Consider a 10-year project with the following information: Initial fixed asset investment = $1,500,000 Straight-line depreciation to zero over the 10-year life Zero salvage value Price = $257 Variable costs = $152 Fixed costs = $825,200 Quantity sold = 122,000 units Tax rate = 35 percent What is the sensitivity of OCF to changes in quantity sold? Ca. $91.2 per unit b. $97.5 per unit C. $110.12 per unit d. $115.98 per unit e. None of above

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