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13 A 5-year project is expected to generate annual sales of 8,000 units at a price of $67 per unit and a variable cost of

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13 A 5-year project is expected to generate annual sales of 8,000 units at a price of $67 per unit and a variable cost of $38 per unit. The equipment necessary for the project will cost $245,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $145,000 per year and the tax rate is 21 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price? 25 Multiple Choice ebook References S3 458 $2.597 56,320 S4,320 $3,028

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