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Consider a project with a life of 5 years with the following information: initial fixed asset investment = $300,000; straight-line depreciation to zero over the
Consider a project with a life of 5 years with the following information: initial fixed asset investment = $300,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price=$38; variable costs= $17; fixed costs= $105,000; quantity sold=68,250 units; tax rate= 21 percent. How sensitive is OCF to changes in quantity sold?
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