A 5-year project is expected to generate annual sales of 9,200 units at a price of $79 per unit and a variable cost of $50 per unit. The equipment necessary for the project will cost $341,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $205,000 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?

Multiple Choice

• $4,719

• $7,268

• $4,346

• $5,465

• $3,973