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Consider a project with a life of 3 years with the following information: initial fixed asset investment = $420,000; straight-line depreciation to zero over the

Consider a project with a life of 3 years with the following information: initial fixed asset investment = $420,000; straight-line depreciation to zero over the 3-year life; zero salvage value; price = $39; variable costs = $17; fixed costs = $247,800; quantity sold = 121,422 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? Multiple Choice

$21.57

$16.72

$11.87

$19.06

$0.06

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