How sensitive is ocf to changes in quantity sold

Reference no: EM13301135

Consider a four year project with the following information: initial fixed asset investment = $490,00; straight line depreciation to zero over the four year life; zero salvage value; price = $32; Variable cost = $19; fixed cost = $210,000; quantity sold = 110,000 units; tax rate = 34%. How sensitive is OCF to changes in quantity sold?

Reference no: EM13301135

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