Problem:
Consider a four-year project with the following information: initial fixed asset investment = $480,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $32; variable costs = $22; fixed costs = $170,000; quantity sold = 78,000 units; tax rate = 32 percent.
Required:
Question: How sensitive is OCF to changes in quantity sold?
Note: Please provide through step by step calculations.