Question
ABC Company has a proposed project that will generate sales of 274 units annually at a selling price of $191 each. The fixed costs are
ABC Company has a proposed project that will generate sales of 274 units annually at a selling price of $191 each. The fixed costs are $5,600 and the variable costs per unit are $29. The project requires $14,978 of equipment that will be depreciated on a straight-line basis to a zero book value over the 5-year life of the project. That is, depreciation each year is $14,978/5. The tax rate is 35 percent. What is the operating cash flow?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
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