Question: Consider a three - year project with the following information: initial fixed asset investment = $ 6 9 8 , 0 0 0 ; straight

Consider a three-year project with the following information: initial fixed asset investment =$698,000; straight-line
depreciation to zero over the four-year life; zero salvage value; price =$34.15; variable costs =$22.60; fixed costs
=$210,500; quantity sold =96,500 units; tax rate =40 percent.
Required:
What is the OCF at the base-case quantity sold?
What is the OCF at 97,500 units sold?
How sensitive is OCF to changes in quantity sold?
Consider a three-year project with the following information: initial fixed asset

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