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Consider a four-year project with the following information Intial fored asset investment -S480,000 Straight-line depreciation to zero over the four-year life Zero salvage value Price

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Consider a four-year project with the following information Intial fored asset investment -S480,000 Straight-line depreciation to zero over the four-year life Zero salvage value Price per unit-$37 Vanable cost per unit = 523 Fixed costs = $195,000 Quantity sold - 90,000 units Tax rate = 34% 17 of 24 Calculate the base-case operating cash flow (OCF). a $635, 700 Ob $710.800 OC $743,700 Od 5798,000 e. None of the above unsure 8 of 24 How sensitive is operating cash flow (OCF) to changes in quantity sold? a the OCF will increase by S7 87 for every additional unit sold b. the OCF will increase by 58.23 for every additional unit sold the OCF will increase by 50 87 for every additional unit sold d the OCF will increase by 59 24 for every additional unit sold e None of the above Hide

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