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Consider a three-year project with the following information: Initial fixed asset investment = $685,000; straight-line depreciation to zero over the 4-year life; zero salvage value;
Consider a three-year project with the following information: Initial fixed asset investment = $685,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $38.99; variable costs = $28.01; fixed costs = $317,000; quantity sold = 82,000 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold
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