Question
ABC Company has a proposed project that will generate sales of 444 units annually at a selling price of $291 each. The fixed costs are
ABC Company has a proposed project that will generate sales of 444 units annually at a selling price of $291 each. The fixed costs are $6,542 and the variable costs per unit are $124. The project requires $34,799 of equipment that will be depreciated on a straight-line basis to a zero book value over the 12-year life of the project. That is, depreciation each year is $34,799/12. The tax rate is 31 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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