Consider a project with a life of 4 years with the following information: initial fixed asset investment = $470,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $34; variable costs = $14; fixed costs = $249,100; quantity sold = 149,460 units; tax rate = 22 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 is (OCF2 - OCF1)/(Q2 - Q1). This is OCF per unit change in Q]. Multiple Choice

• $11.08

• $0.06

• $20.12

• $15.60

• $17.78