Question: Consider a four year project with the following information: initial fixed asset investment = $545,000; straightline depreciation to zero over the four year life; zero

Consider a four year project with the following information: initial fixed asset investment = $545,000; straightline depreciation to zero over the four year life; zero salvage value; price= $35; variable costs = $24; fixed costs = $220,000; quantity sold = 73,000 units; tax rate = 22 percent. How sensitive is ocf to changes in quantity sold?

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