Question: Consider a three - year project with the following information: Initial fixed asset investment = $ 7 2 0 , 0 0 0 ; straight

Consider a three-year project with the following information: Initial fixed asset investment =$720,000;
straight-line depreciation to zero over the 5-year life; zero salvage value; price =$39.55; variable costs
=$28.43; fixed costs =$338,000; quantity sold =89,000 units; tax rate =21 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.
OCF
What is the OCF at 90,000 units sold?
Note: Do not round intermediate calculations and round your answer to the nearest whole number,
e.g.,32.
OCF
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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 Consider a three-year project with the following information: Initial fixed asset

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