Question: P11-17 Sensitivity Analysis [LO1] Consider a project with a life of 9 years with the following information: initial fixed asset investment $480,000; straight-line depreciation to
P11-17 Sensitivity Analysis [LO1] Consider a project with a life of 9 years with the following information: initial fixed asset investment $480,000; straight-line depreciation to zero over the 9-year life; zero- salvage value; price $31; variable costs $14; fixed costs $206,400; quantity sold = 140,352 units; tax rate= 21 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-OCF02 -Q1). This is OCF per unit change in
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