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Consider a four-year project with the following information: initial fixed asset investment = $600,000; straight-line depreciation to...

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Finance

Consider a four-year project with the following information:initial fixed asset investment = $600,000; straight-linedepreciation to zero over the four-year life; zero salvage value;price = $46; variable costs = $36; fixed costs = $275,000; quantitysold = 106,000 units; tax rate = 23 percent.

How sensitive is OCF to changes in quantity sold? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

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Consider a four-year project with the following information:initial fixed asset investment = $600,000; straight-linedepreciation to zero over the four-year life; zero salvage value;price = $46; variable costs = $36; fixed costs = $275,000; quantitysold = 106,000 units; tax rate = 23 percent.How sensitive is OCF to changes in quantity sold? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

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