Question: Consider a 5-year project with the following information: initial fixed asset investment = $330,000; 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 = $330,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price = $29; variable costs = $14; fixed costs = $105,600; quantity sold = 58,080 units; tax rate = 35 percent. How sensitive is OCF to changes in quantity sold?

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