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Consider a four-year project with the following information: initial fixed asset investment = $490,000; straight-line...

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Accounting

Consider a four-year project with the following information: initial fixed asset investment = $490,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $34; variable costs = $24; fixed costs = $190,000; quantity sold = 79,000 units; tax rate = 34 percent. How sensitive is OCF to changes in quantity sold?

Change in OFC/Change in Q =

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