Question: Consider a 10-year project with the following information: initial fixed asset investment = $341,000; 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 = $341,000; straight-line depreciation to zero over the 10-year life; zero salvage value; price = $38; variable costs = $16; fixed costs = $125,000; quantity sold = 98918 units; tax rate = 34%.

What is the percentage sensitivity of OCF to a change in variable cost per unit? (Round answer to 2 decimal places. Do not round intermediate calculations).

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