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Consider a 9-year project with the following information: initial fixed asset investment = $410,000; straight-line depreciation to zero over the 9-year life; zero salvage value;
Consider a 9-year project with the following information: initial fixed asset investment = $410,000; straight-line depreciation to zero over the 9-year life; zero salvage value; price = $31; variable costs = $13; fixed costs = $192,700; quantity sold = 125,255 units; tax rate = 36 percent. How sensitive is OCF to changes in quantity sold? (Do not round your intermediate calculations.)
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