How sensitive is ocf to changes in quantity


Consider a four-year project with the following information: Initial fixed asset investment = $600,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $35; variable costs = $28; fixed costs = $240,000; quantity sold = 90,000 units; tax rate = 30 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

ΔOCF/ΔQ =      $_____

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Financial Management: How sensitive is ocf to changes in quantity
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