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Consider a project with a life of 4 years with the following information: initial fixed asset investment = $ 3 7 0 , 0 0

Consider a project with a life of 4 years with the following information: initial fixed asset investment = $370,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $26; variable costs = $18; fixed costs = $177,600; quantity sold =85,248 units; tax rate =25 percent. How sensitive is OCF to changes in quantity sold?
Multiple Choice
$6.84
$6.00
$4.26
$0.17
$7.74

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