Straight-line depreciation to zero over five-year life

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Consider a three-year project with the following information: initial fixed asset investment = $880,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $34.45; variable costs = $22.75; fixed costs = $212,000; quantity sold = 98,000 units; tax rate = 34 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131349105

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