1. a company provided the following details for a new project

	Expected value	+/- range
Sales quality	15,000	10%
Sales price per unit	$25	5%
Variable cost per unit	$15	3%
Fixed cost	$50,000	1%

the initial investment is $90,000 depreciated straight-line over the projects 3-yer life with zero salvage value. The half-year rule does not apply, and the firms cost od capital is 10% and its tax rate is 35%. What is the worst case annual cash flow from operations of the project?

1. $20,508
2. $11,043
3. $50,508
4. $31,550
5. $65,605