Homework answers / question archive / Consider a four-year project with the following information: initial fixed asset investment = $ 440,000 straight-line depreciation to zero over the four-year life zero salvage value price: $ 25 variable costs: $ 15 fixed costs: $ 130,000 quantity sold: 73,000 units tax rate: 35 percent How sensitive is OCF to changes in quantity sold?

Consider a four-year project with the following information: initial fixed asset investment = $ 440,000 straight-line depreciation to zero over the four-year life zero salvage value price: $ 25 variable costs: $ 15 fixed costs: $ 130,000 quantity sold: 73,000 units tax rate: 35 percent How sensitive is OCF to changes in quantity sold?

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Consider a four-year project with the following information:

initial fixed asset investment = $ 440,000

straight-line depreciation to zero over the four-year life

zero salvage value

price: $ 25

variable costs: $ 15

fixed costs: $ 130,000

quantity sold: 73,000 units

tax rate: 35 percent

How sensitive is OCF to changes in quantity sold?