Fin 314 | Corporate Financial Management Q3 Date First Name Last Name is analyzing a proposed project. The company expects to sell 8,000 units, plus or minus 4 percent. The expected cost per unit is $11 and the expected fised costs are $290,000. The fixed and variable cost estimates are considered accurate within a plus or minus S percent range. The depreciation expense is $68,000. The tax rate is 32 percent. The sales price is estimated at S64 a unit, give or take 3 percent. What is the operating cash flow under the best case scenario? A. $148,247 B. $148,475 C. $107,146 D. $168,630 E. $174,220 2. Stellar Plastics is analyzing a proposed project. The company expects to sell 12,000 units, plus or minus 5 percent. The expected variable cost per unit is $3.20 and the expected fixed costs are $30,000. The fixed and variable cost estimates are considered acurate within a plus or minus 5 percent range. The depreciation expense is $24,000. The tax rate is 34 percent. The sales price is estimated at $7.50 a unit, plus or minus 4 percent. What is the operating cash flow for a sensitivity analysis using total fixed costs of $31,000? A. $19,580 B. S21,756 C. $27,210 D. S31,460 E $37,540 3. The accounting break-even production quantity for a project is 12,320 units. The fixed costs are $216,000 and the contribution margin per unit is $28. The fixed assets required for the project will be depreciated on straight-line basis to zero over the project's s-year life. What is the amount of fixed assets required for this project? A. $325,920 B. $644,800 C $748,500 D. $1,080,000 E. $1,629,600 4. The variable costs per unit of $17.90 and an estimated sales price of $26.50 per unit. How many units must the firm sellto on a cash basis? Motor Works is considering an expansion project with estimated annual fixed costs of $71 ,000, depreciation of $38,500, break-even A. 6,521 units B. 8,256 units C 8,510 units D. 9,667 units E 10,842 units Page 1 of