You are analyzing a project and have developed the following estimates. The depreciation is $5,800 a year and the t rate is 35 percent. What is the best-cas operating cash flow? Base Case Lower Bound Upper Bound Unit Sales 800 750 850 Sales price per unit $29 $28 $30 Variable cost per unit $13 $11 $15 Fixed Costs $6,800 $6,000 $7,600 A-$4,196.80 B-$7,473.00 C-$8,627.50 D-$6,701.40

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You are analyzing a project and have
developed the following estimates. The
depreciation is $5,800 a year and the tax
rate is 35 percent. What is the best-case
operating cash flow?
Base Case Lower Bound Upper Bound
Unit Sales 800 750 850
Sales price per unit $29 $28 $30
Variable cost per unit $13 $11 $15
Fixed Costs $6,800 $6,000 $7,600
A-$4,196.80
B-$7,473.00
C-$8,627.50
D-$6,701.40
Transcribed Image Text:You are analyzing a project and have developed the following estimates. The depreciation is $5,800 a year and the tax rate is 35 percent. What is the best-case operating cash flow? Base Case Lower Bound Upper Bound Unit Sales 800 750 850 Sales price per unit $29 $28 $30 Variable cost per unit $13 $11 $15 Fixed Costs $6,800 $6,000 $7,600 A-$4,196.80 B-$7,473.00 C-$8,627.50 D-$6,701.40
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