Consider a five-year project with the following information


Consider a five-year project with the following information: initial fixed asset investment = $500,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $35 per unit; variable costs = $20 per unit; fixed costs = $350,000 per year; quantity sold = 90,000 units per year; tax rate = 34%. How sensitive is OCF to changes in quantity sold?

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Financial Management: Consider a five-year project with the following information
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