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P11-17 Sensitivity Analysis (LOI) Consider a project with a life of 9 years with the following information: initial fixed asset investment = $360,000; straight-line depreciation
P11-17 Sensitivity Analysis (LOI) Consider a project with a life of 9 years with the following information: initial fixed asset investment = $360,000; straight-line depreciation to zero over the 9-year life; zero salvage value; price = $36; variable costs = $13; fixed costs = $118,800; quantity sold = 70,092 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold? Multiple Choice O $0.06 O $17.94 $23.14 $20.45 $12.74
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