Question: Consider a three - year project with the following information: Initial fixed asset investment = $ 7 3 0 , 0 0 0 ; straight

Consider a three-year project with the following information: Initial fixed asset investment = $730,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $39.71; variable costs = $28.55; fixed costs = $344,000; quantity sold =91,000 units; tax rate =23 percent. How sensitive is OCF to changes in quantity sold?

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