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# 4 Sensitivity Analysis Cunsider a project with the following information: Initial fixed asset investment = $ 6 5 5 , 0 0 0 ;

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Sensitivity Analysis Cunsider a project with the following information: Initial fixed asset investment =$655,000; straight-line depreciation to zero over the four-year life; zero salvage value; price =$28; variable costs =$16; fixed costs =$245,000; quantity sold -61,000 units; tax rate -21 percent. How sensitive is OCF to changes in quantity sold?
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