Question: Consider a four-year project with the following information: initial fixed asset investment = $502,090; 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 = $502,090; straight-line depreciation to zero over the four-year life; zero salvage value; price = $35; variable costs = $23; fixed costs = $188,913; quantity sold = 79,157 units; tax rate = 33 percent. Calculate the sensitivity of the OCF to changes in the quantity sold.

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