Question: P11-17 Sensitivity Analysis (LO1] Consider a project with a life of 6 years with the following information: initial fixed asset investment = $420,000; straight-line depreciation

P11-17 Sensitivity Analysis (LO1] Consider a project with a life of

P11-17 Sensitivity Analysis (LO1] Consider a project with a life of 6 years with the following information: initial fixed asset investment = $420,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $39; variable costs = $19; fixed costs = $231,000; quantity sold = 110,880 units; tax rate = 23 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 - OCFI/Q2 -Q1). This is OCF per unit change in Ql. Multiple Choice $10.93 $0.06 $19.87 O $17.56 $15.40

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