Question: Consider a four-year project with the following information: initial fixed asset investment = $502,571; straight-line depreciation to zero over the four-year life; zero salvage value;
Consider a four-year project with the following information: initial fixed asset investment = $502,571; straight-line depreciation to zero over the four-year life; zero salvage value; price = $33; variable costs = $25; fixed costs = $198,134; quantity sold = 79,594 units; tax rate = 36 percent. Calculate the sensitivity of the OCF to changes in the quantity sold. Do not round intermediate calculations and round your final answer to 2 decimal places.
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