Question: MC algo 11-3 OCF Sensitivity A 9-year project is expected to generate annual sales of 8,700 units at a price of $74 per unit and

 MC algo 11-3 OCF Sensitivity A 9-year project is expected to

MC algo 11-3 OCF Sensitivity A 9-year project is expected to generate annual sales of 8,700 units at a price of $74 per unit and a variable cost of $45 per unit. The equipment necessary for the project will cost $301,000 and will be depreciated on a straight-ine basis over the life of the project. Fixed costs are $180,000 per year and the tax rate is 35 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price

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