Question: Consider a 5 year project with the following information. Initial fixed asset investment=$715,000. Straight line depreciation to zero over the 5-year life; zero salvage value.

Consider a 5 year project with the following information. Initial fixed asset investment=$715,000. Straight line depreciation to zero over the 5-year life; zero salvage value. The tax rate=25%.

If the Operating Cash Flow ( OCF) =$517,100 with units of 88,000 sold, and the Operation Cash Flow (OCF) =$525,425 with units of 89,000 sold,

How sensitive is OCF to changes in units sold? (Express as a positive number)

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