1. Miller Lite, Inc. is considering a new four-year expansion project that is estimated to generate $5.2 million in annual sales, with costs of $2.0 million. The depreciation charge is $1,859,198. If the tax rate is 30 percent, what is the OCF for this project?

2. Mike's Fish Market is implementing a project that will initially increase accounts payable by $4,524, increase inventory by $5,355, and decrease accounts receivable by $893. All net working capital will be recouped when the project terminates. What is the cash flow related to the net working capital for the last year of the project?

3. Fig Newton Industries is considering a project and has developed the following estimates: unit sales = 7,849, price per unit = $149, variable cost per unit = $91, fixed costs = $216,400. The depreciation is $94,700 a year and the tax rate is 50 percent. What effect would an increase of $1 in the selling price have on the operating cash flow?