Question: Consider a four-year project with the following information: initial fixed asset investment =$488,000; straight-line depreciation to zero over the four-year life; zero salvage value; price
Consider a four-year project with the following information: initial fixed asset investment =$488,000; straight-line depreciation to zero over the four-year life; zero salvage value; price =$39; variable costs =$30; fixed costs =$208,000; quantity sold =97,000 units; tax rate =34%. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit \$ sign in your response.) OCF/Q $
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