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Consider a three - year project with the following information: initial fixed asset investment = $ 6 9 8 , 0 0 0 ; straight
Consider a threeyear project with the following information: initial fixed asset investment $; straightline depreciation to zero over the fouryear life; zero salvage value; price $; variable costs $; fixed costs $; quantity sold units; tax rate percent.
Required:
What is the OCF at the basecase quantity sold?
What is the OCF at units sold?
How sensitive is OCF to changes in quantity sold?
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