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A 7-year project is expected to generate annual sales of 9,400 units at a price of $81 per unit and a variable cost of $52
A 7-year project is expected to generate annual sales of 9,400 units at a price of $81 per unit and a variable cost of $52 per unit. The equipment necessary for the project will cost $357,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $215,000 per year and the tax rate is 40 percent. With the understanding that Operating Cash Flow = (Sales - Costs - Depreciation) (1 Tax rate) + Depreciation - What would the resulting operating cash flow be if the per unit sales price increases $1? $60,600 $54,960 $57,740 $53,965
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