Sensitivity analysis consider a three-year project with the


Question: Sensitivity Analysis. Consider a three-year project with the following information: initial fixed asset investment = $645,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $38.70; variable costs = $29.65; fixed costs = $315,000; quantity sold = 90,000 units; tax rate = 34 percent. How sensitive is OCF to changes in quantity sold?

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