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question 14 Consider a project with a life of 10 years with the following information: initial fixed asset investment = $380,000; straight-line depreciation to zero

question 14

Consider a project with a life of 10 years with the following information: initial fixed asset investment = $380,000; straight-line depreciation to zero over the 10-year life; zero salvage value; price = $27; variable costs = $15; fixed costs = $190,000; quantity sold = 112,100 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold?

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