Question: Consider a three-year project with the following information: Initial fixed asset investment = $670,000; straight-line depreciation to zero over the 4-year life; zero salvage value;

Consider a three-year project with the following information: Initial fixed asset investment = $670,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $38.75; variable costs = $27.83; fixed costs = $308,000; quantity sold = 79,000 units; tax rate = 21 percent.

What is the OCF at 80,000 units sold?

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