Question: P11-17 Sensitivity Analysis [LO1] Consider a project with a life of 10 years with the following information: initial fixed asset investment = $500,000; straight-line depreciation
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P11-17 Sensitivity Analysis [LO1] Consider a project with a life of 10 years with the following information: initial fixed asset investment = $500,000; straight-line depreciation to zero over the 10-year life; zero salvage value; price = $35; variable costs = $13; fixed costs = $290,000; quantity sold = 182,700 units; tax rate = 23 percent. How sensitive is OCF to changes in quantity sold? See hint for help. Multiple Choice O $12.03 O $19.31 O $21.85 O $0.06 $16.94
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