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Consider a project with a life of 5 years with the following information: initial fixed asset investment = $450,000; straight-line depreciation to zero over the
Consider a project with a life of 5 years with the following information: initial fixed asset investment = $450,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price = $30; variable costs = $20; fixed costs = $211,500; quantity sold = 124,785 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold?
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