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Consider a four-year project with the following information: initial fixed asset investment = $590,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $34; variable costs = $26; fixed costs = $230,000; quantity sold = 89,000 units; tax rate = 35 percent.

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Question: How sensitive is OCF to changes in quantity sold?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171656

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