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A company has the following estimates for a new five-year project: Cost of machine = $500,000, price = $1,000 per unit, variable cost = $90
A company has the following estimates for a new five-year project: Cost of machine = $500,000, price = $1,000 per unit, variable cost = $90 per unit, fixed costs = $340,000, and quantity = 7,000 units. Suppose the company believes that all of these estimates are accurate only to within plus or minus 5 percent. The cost of the machine will be depreciated to zero over five years and will have no salvage value. The tax rate is 21 percent. What is the operating cash flow for the worst-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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