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Bad Company has a new 4-year project that will have annual sales of 9,200 units. The price per unit is $20.70 and the variable cost
Bad Company has a new 4-year project that will have annual sales of 9,200 units. The price per unit is $20.70 and the variable cost per unit is $8.45. The project will require fixed assets of $102,000, 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 $42,000 per year and the tax rate is 21 percent. What is the operating cash flow for Year 3? Multiple Choice $59,025 $73,662 $52,620 $34,322 $55,814
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