Question
Consider a project with the following information: Expected Units Sold in Year 1: 900 units Expected Sale Price in Year 1: $50 per unit Expected
Consider a project with the following information: Expected Units Sold in Year 1: 900 units Expected Sale Price in Year 1: $50 per unit Expected Operating Costs in Year 1: 40% of sales Depreciation Rate in Year 1: 20% Interest expense in Year 1: $4,000 Cost of Fixed Assets in Year 0: $50,000 Increase in Accounts Payable in Year 1: $3,000 Increase in Accounts Receivable in Year 1: $8000 Increase in Inventories in Year 1: $4,000 Tax rate: 35% What is the Operating Cash Flow in Year 1? Enter your answer without the dollar sign and round your answer to two decimal places.
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