Question: P11-17 Sensitivity Analysis [LO1] Consider a project with a life of 9 years with the following information: initial fixed asset investment = $400,000; straight-line depreciation

P11-17 Sensitivity Analysis [LO1] Consider a project with a life of 9 years with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the 9-year life; zero salvage value; price = $28; variable costs $20; fixed costs = $136,000; quantity sold = 69,360 units; tax rate= 25 percent. How sensitive is OCF to changes in quantity sold? [Calculate OCF with data given, and also for an arbitrary quantity, say 1000 units more. Sensitivity is (OCF2-OCPI(Q2 -On. This is OCF per unit change in Q). Multiple Choice $4.26 $0.17 $6.84

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