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Consider a three - year project with the following information: initial fixed asset investment = $ 7 7 0 , 0 0 0 ; straight

Consider a three-year project with the following information: initial fixed asset
investment = $770,000; straight-line depreciation to zero over the three-year life; zero
salvage value; price = $34.99; variable costs = $23.16; fixed costs = $245,000; quantity
sold =94,500 units; tax rate =40 percent. How sensitive is OF to an increase of one
unit in the quantity sold?
$7.10
$7.73
$8.67
$9.97
$11.83

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