Bad Company has a new 4-year project that will have annual sales of 8,900 units. The price per unit is $20.40 and the variable cost per unit is $8.15. The project will require fixed assets of $99,000, which will be depreciated on a 3-year MACRS schedule. The annual depreciation percentages are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. Fixed costs are $39,000 per year and the tax rate is 40 percent. What is the operating cash flow for Year 3?

Multiple Choice

• $71,280

• $47,880

• $55,109

• $33,875

• $51,915

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