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Consider a project with a life of 10 years with the following information: initial fixed asset investment $340,000 ; straight-line depreciation to zero over the
Consider a project with a life of 10 years with the following information: initial fixed asset investment $340,000 ; straight-line depreciation to zero over the 10-year life; zero salvage value; price=\$31; variable costs s=\$14 fixed costs=\$193,800; quantity sold = 85,272 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? Calculate OCF with data given, and also for an arbitrary quantity, say 1000 units more. Sensitivity (OCF2OCF1 Q2 -Q1)This OCF per unit change Q
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