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1 7 . You are analyzing a proposed 3 - year project. You expect to sell 1 2 , 0 0 0 units per year

17. You are analyzing a proposed 3-year project. You expect to sell 12,000 units per year at an average selling price of $14.99 per unit. The initial cash outlay for fixed assets will be $78,000. These assets will be depreciated straight-line to a zero book value over the life of the project. Fixed costs are cash flow if the tax rate is 34 percent?
expected to be $61,234 and variable costs should be $5.89 per unit. What is the expected operating
a. $10,344
b. $40,498
. $50,344
d. $55,914

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