Question: Consider a four-year project with the following information: initial fixed asset investment = $400,000; 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 = $400,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $20; variable costs = $12; fixed costs = $100,000; quantity sold = 70,000 units; tax rate = 30 percent. How sensitive is OFC to changed in quality sold?

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