Question
ABC Company has a proposed project that will generate sales of 303 units annually at a selling price of $253 each. The fixed costs are
ABC Company has a proposed project that will generate sales of 303 units annually at a selling price of $253 each. The fixed costs are $7,539 and the variable costs per unit are $68. The project requires $39,652 of equipment that will be depreciated on a straight-line basis to a zero book value over the 13-year life of the project. That is, depreciation each year is $39,652/13. The tax rate is 30 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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