Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work 19 MC algo 9-26 Calculating OCF 10 points Bad Company has a new 4-year project that will have annual sales of 8,600

image text in transcribedimage text in transcribed

Check my work 19 MC algo 9-26 Calculating OCF 10 points Bad Company has a new 4-year project that will have annual sales of 8,600 units. The price per unit is $20.10 and the variable cost per unit is $7.85. The project will require fixed assets of $96,000, 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 $36,000 per year and the tax rate is 40 percent. What is the operating cash flow for Year 3? 8 00:36:33 Multiple Choice $54,404 $47,297 $33,427 $51,210 O $68,897

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Evolution Of Finance

Authors: Barbara Guth

1st Edition

1633377261, 978-1633377264

More Books

Students also viewed these Finance questions