P11-17 Sensitivity Analysis (LO1) Consider a project with a life of 6 years with the...
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P11-17 Sensitivity Analysis (LO1) Consider a project with a life of 6 years with the following information: initial fixed asset investment = $480,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $31; variable costs = $19; fixed costs = $244,800; quantity sold = 122,400 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? Multiple Choice $10 $0.11 $6.48
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