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Consider a project with a life of 4 years with the following information: initial fixed asset investment $390,000; straight-line depreciation to zero over the 4-year
Consider a project with a life of 4 years with the following information: initial fixed asset investment $390,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $36; variable costs = $12; fixed costs = $175,500; quantity sold 108,810 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold? = =
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