Question: Consider a 5-year project with the following information: initial fixed asset investment = $470,000; 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 = $470,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price = $35; variable costs = $18; fixed costs = $169,200; quantity sold = 84,600 units; tax rate = 34 percent. How sensitive is OCF to changes in quantity sold?

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