Question: Sensitivity Analysis [ LO 1 ] Consider a four - year project with the following information: Initial fixed asset investment = $ 6 5 5

Sensitivity Analysis [LO1] Consider a four-year project with the following information:
Initial fixed asset investment = $655,000; straight-line depreciation to zero
over the four-year life; zero salvage value; price = $28; variable costs = $16; fixed
costs = $245,000; quantity sold =61,000 units; tax rate =21 percent. How sensitive
is OCF to changes in quantity sold?

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