How sensitive is ocf to changes in quantity


Consider a four-year project with the following information: initial fixed asset investment = $480,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $32; variable costs = $22; fixed costs = $170,000; quantity sold = 78,000 units; tax rate = 32 percent. How sensitive is OCF to changes in quantity sold?

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Financial Management: How sensitive is ocf to changes in quantity
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