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 = $42; variable costs = $22; fixed costs = $130,000; quantity sold = 107,314 units; tax rate = 34%. What is the dollar sensitivity of OCF to a change in quantity sold? (Round answer to 2 decimal places. Do not round intermediate calculations)
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