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Consider a three-year project with the following information:initial fixed asset investment = $885,000; straight-linedepreciation to zero over the five-year life; zero salvage value;price = $34.65; variable costs = $22.85; fixed costs = $213,000;quantity sold = 99,000 units; tax rate = 40 percent.What is the OCF at the base-case quantity sold?What is the OCF at 100,000 units sold?How sensitive is OCF to changes in quantity sold?
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