Consider a three-year project with the following information: initial fixed asset investment = $1,000,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $50; variable costs $30; fixed costs $250,000: quantity sold = 100,000 units; tax rate= 40 percent. How sensitive is operating cash flow to a one dollar change in sales price?
a. $1,700,000 b. $100,000
c. $60,000 d. $250,000 e. $5,000,000