Consider a four year project with the following information initial fixed asset investment $460,000 straight line depreciation to zero over the four year life zero salvage value price $28 variable costs $18 fixed costs $150,000 quantity sold 76,000 units tax rate 21 percent How sensitive is OCF to changes in quantity sold Consider a four year project with the following information initial fixed asset investment $460,000 straight line depreciation to zero over the four year life zero salvage value price $28 variable costs $18 fixed costs $150,000 quantity sold 76,000 units tax rate 21 percent How sensitive is OCF to changes in quantity sold

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Question: Consider a four-year project with the following information: initial fixed asset investment = $460,000; 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 = $460,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $28; variable costs = $18; fixed costs = $150,000; quantity sold = 76,000 units; tax rate = 21 percent.

How sensitive is OCF to changes in quantity sold?

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