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2. Precise Machinery is analyzing a proposed project. Thecompany expects to sell 2,100 units, give or take 5 percent. Theexpected variable cost per unit is

2. Precise Machinery is analyzing a proposed project. Thecompany expects to sell 2,100 units, give or take 5 percent. Theexpected variable cost per unit is $260 and the expected fixedcosts are $589,000. Cost estimates are considered accurate within aplus or minus 4 percent range. The depreciation expense is$129,000. The sales price is estimated at $750 per unit, give ortake 2 percent. The tax rate is 35 percent. The company isconducting a sensitivity analysis on the sales price using a salesprice estimate of $755. What is the operating cash flow based onthis analysis?

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