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A company is considering a new investment with the following estimates: Annual Number of Units Sold = 7,000; Variable Costs per Unit = $100; Annual
A company is considering a new investment with the following estimates: Annual Number of Units Sold = 7,000; Variable Costs per Unit = $100; Annual Fixed Costs = $1,000,000; Price per Unit = $300. All estimates are believed to be accurate only to within 13%. If you were creating a scenario analysis and calculating this project's expected annual operating cash flows under the best-case scenario, what amount for total annual cash inflow from sales would you include in your analysis?
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