Question: Consider a four-year project with the following information: initial fixed asset investment = $502193; 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 = $502193; straight-line depreciation to zero over the four-year life; zero salvage value; price = $33; variable costs = $25; fixed costs = $198670; quantity sold = 79426 units; tax rate = 37 percent.

Calculate the sensitivity of the OCF to changes in the quantity

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