Question: PLEASE ANSWER #18 17. Sensitivity Analysis [L01] Consider a four-year project with the following infor- mation: Initial fixed asset investment = $575,000; straight-line depreciation to

PLEASE ANSWER #18

17. Sensitivity Analysis [L01] Consider a four-year project with the following infor- mation: Initial fixed asset investment = $575,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $29; variable costs = $19; fixed costs = $235,000; quantity sold = 76,000 units; tax rate = 21 percent. How sensitive is OCF to changes in quantity sold? 18. Operating Leverage [LO4] In the previous problem, what is the degree of operat- ing leverage at the given level of output? What is the degree of operating leverage at the accounting break-even level of output

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