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Consider a project with a life of 8 years with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the
Consider a project with a life of 8 years with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the 8-year life; zero salvage value; price = $34; variable costs = $15; fixed costs = $188,000; quantity sold = 95,880 units; tax rate = 21 percent. How sensitive is OCF to changes in quantity sold?
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