Question: Consider a five - year project with the following information: initial fixed asset investment = $ 4 7 0 , 0 0 0 ; straight

Consider a five-year project with the following information: initial fixed asset investment = $470,000; straight-line depreciation to zero over the five-year life; zero salvage value; unit price = $41; unit variable cost = $21; fixed costs = $350,000; quantity sold =30,000 units; tax rate =21%. How sensitive is OCF to changes in quantity sold (i.e., the change in OCF given one unit increase in quantity)?
$14.90
$15.20
$15.50
$15.80
$16.10

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