Question: Sensitivity Analysis. Consider a four -year project with the following information: initial fixed asset investment =$490,000straight -line depreciation to zero over the four-year life; zero

Sensitivity Analysis. Consider a four -year project with the following information: initial fixed asset investment =$490,000straight -line depreciation to zero over the four-year life; zero salvage value; price =$32; variable costs =$19; fixed costs =$210000; quantity sold =110000units; tax rate =34percent. how sensitive is OCF to changes in quantity sold? What is the degree of operating leverage at the accounting break-even level of output?

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