## (Solution Download) Consider a three-year project with the following information: initial fixed asset investment = \$682,

 Consider a three-year project with the following information: initial fixed asset investment = \$682,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = \$33.35; variable costs = \$22.20; fixed costs = \$206,500; quantity sold = 92,500 units; tax rate = 40 percent.

 Required: What is the OCF at the base-case quantity sold? (Do not round intermediate calculations. Round your answer to the nearest whole number (e.g., 32).)

 OCF \$

 What is the OCF at 93,500 units sold? (Do not round intermediate calculations. Round your answer to the nearest whole number (e.g., 32).)

 OCF \$

 How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round your answer as directed but do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

 ?OCF/?Q \$

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