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A 9-year project is expected to generate annual sales of 9,900 units at a price of $86 per unit and a variable cost of $57
A 9-year project is expected to generate annual sales of 9,900 units at a price of $86 per unit and a variable cost of $57 per unit. The equipment necessary for the project will cost $397,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $240,000 per year and the tax rate is 35 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price? O $4,493 $5142 $5,792 O $4,817 o $6,435
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