Question: Consider a three - year project with the following information: Initial fixed asset investment = $ 7 4 0 , 0 0 0 ; straight

Consider a three-year project with the following information: Initial fixed asset investment = $740,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $39.87; variable costs = $28.67; fixed costs = $350,000; quantity sold =93,000 units; tax rate =25 percent.
What is the OCF at the base-case quantity sold?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32.
What is the OCF at 94,000 units sold?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32.
How sensitive is OCF to changes in quantity sold?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.

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