Question: Consider a three-year project with the following information: Initial fixed asset investment = $710,000; 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 = $710,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price = $39.39; variable costs = $28.31; fixed costs = $332,000; quantity sold = 87,000 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold?

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