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18. The following data apply to the next two questions Consider a four-year project with the following information: Initial fixed asset investment =$480,000 Straight-line depreciation

18.
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The following data apply to the next two questions Consider a four-year project with the following information: Initial fixed asset investment =$480,000 Straight-line depreciation to zero over the four-year life Zero salvage value Price per unit= $37 Variable cost per unit = $23 . Fixed costs = $195,000 Quantity sold = 90,000 units Tax rate = 34% = . 18 of 24 How sensitive is operating cash flow (OCF) to changes in quantity sold? O a. the OCF will increase by $7.87 for every additional unit sold. O b. the OCF will increase by $8.23 for every additional unit sold O c. the OCF will increase by $8.87 for every additional unit sold O d. the OCF will increase by $9.24 for every additional unit sold Oe. None of the above Unsure Previous page F 3 5 6 7 Next page 4

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