Question: Consider a three-year project with the following information: Initial fixed asset investment = $715,000; straight-line depreciation to zero over the 5-year life; zero salvage value;

Consider a three-year project with the following information: Initial fixed asset investment = $715,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price = $39.47; variable costs = $28.37; fixed costs = $335,000; quantity sold = 88,000 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 89,000 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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