Initial fixed asset investment-variable costs-tax rate

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Reference no: EM131341409

Consider a 10-year project with the following information: initial fixed asset investment = $360,000; straight-line depreciation to zero over the 10-year life; zero salvage value; price = $29; variable costs = $18; fixed costs = $169,200; quantity sold = 86,292 units; tax rate = 33 percent. How sensitive is OCF to changes in quantity sold?

Reference no: EM131341409

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