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= A company has the following estimates for a new five-year project: Cost of machine = $600,000, price $1,100 per unit, variable cost = $100
= A company has the following estimates for a new five-year project: Cost of machine = $600,000, price $1,100 per unit, variable cost = $100 per unit, fixed costs = $300,000, and quantity = 6,000 units. Suppose the company believes that all of these estimates are accurate only to within plus or minus 15 percent. The cost of the machine will be depreciated to zero over five years and will have no salvage value. The tax rate is 22 percent. If the price increases by $1, by what amount does the operating cash flow change for the base- case scenario? Enter your answer as dollars with 0 digits to the right of the decimal point in the box shown below
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