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35. Consider a four-year project with the following information: Initial fixed asset investment =$575,000; straight-line depreciation to zero over the four-year life; zero salvage value;
35.
Consider a four-year project with the following information: Initial fixed asset investment =$575,000; straight-line depreciation to zero over the four-year life; zero salvage value; price =$41; variable costs =$28; fixed costs =$250,000; quantity sold =91,000 units; tax rate =23 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.) Step by Step Solution
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