Consider a 5-year project with the following information. Initial fixed asset investment = $700,000. Straight-line depreciation to zero over the 5-year life; zero salvage value. The tax rate = 22%. If the Operating Cash Flow (OCF) = $508,472 with units of 85,000 sold, and the Operating Cash Flow (OCF) = $517,083 with units of 86,000 sold a. How sensitive is OCF to changes in units sold? (Express as a positive number) (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.) a. Sensitivity of OCF to units sold b. What is the formula used to calculate the sensitivy of OCF in a.? (Enter the formula used to calcuate the sensitivity from the formula sheet) b. Formula used to calculate sensitivity in a 1 CFFA OCF - NCS - ANWC FIN325 OCFEBIT+D-T OCF Profit (1-1)+(DT) Formula Sheet NSCFSV- - (SV - BV)(T) BV 5 straight-line Years ANPV 6 Sensitivity Variable Avariable Sensitivity Variable ACCE A variable 8 NPV = CF (1 + R) 0 CF, (1 + IRR) IRR - Rate (NPV Ratepise - Rate Love (NPV.O. - NPV High 13 R (R-9) Dividend Yield Po 18 15 DPR - 19 Earnings (Revenue -Cost) shares outstanding Price/share 16 PE arnings PS Price/share Sales Sales 5/5 Tshares outstanding UPS 20 EPS- Pricepe Benchmark PE ratio x EPS4 Price Benchmark P-S ratio x Salon/Share 21 22 23 - ME 27 (1+r) 25 PVADPMT 26 (1+r)" FVADEPMT PVp-(PMI) PV 24 VA-PMT PMT TE 29 Current Yield Annual Coupon Price (Po) 30 Peond (YTM YTM 31 (1+R) = (1+r)(1+h) (1+YTM 32 FV-PV(1+r)' PV- FV (1+r)' t-in (1) 33 34 35