Question: Consider a 6-year project with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the 6-year life; zero salvage value;

Consider a 6-year project with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $36; variable costs = $17; fixed costs = $140,000; quantity sold = 92,400 units; tax rate = 33 percent. How sensitive is OCF to changes in quantity sold? (Do not round your intermediate calculations.)

Options:

$0.08

$9.04

$12.73

$16.42

$14.51

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