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Consider a four-year project with the following information: initial fixed asset investment = $470,505; straight-line depreciation to zero over the four-year life; zero salvage value;
Consider a four-year project with the following information: initial fixed asset investment = $470,505; straight-line depreciation to zero over the four-year life; zero salvage value; price = $34; variable costs = $24; fixed costs = $194,371; quantity sold = 79,066 units; tax rate = 32 percent. Calculate the sensitivity of the OCF to changes in the quantity sold. (don't round calculations)
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