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Initial fixed asset investment =$480,000 Straight-line depreciation to zero over the four-year life Zero salvage value Price per unit= $37 Variable cost per unit =

Initial fixed asset investment =$480,000

Straight-line depreciation to zero over the four-year life

Zero salvage value

Price per unit= $37

Variable cost per unit = $23

Fixed costs = $195,000

Quantity sold = 90,000 units

Tax rate = 34%

Q1) How sensitive is operating cash flow (OCF) to changes in quantity sold?

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