Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Gerdau Novelties is analyzing a proposed project with annual depreciation of $ 2 8 , 7 5 0 and a tax rate of 2 3

Gerdau Novelties is analyzing a proposed project with annual depreciation of $28,750 and a tax rate of 23 percent. The company expects to sell 16,500 units, +-3 percent. The expected variable cost pel unit is $1.87,+-1 percent, and the expected fixed costs are $24,900,+-1 percent. The sales price is estimated at $7.99 per unit, +-2 percent. What is the operating cash flow for a sensitivity analysis using total fixed costs of $26,000?
$54,208
$64,347
$63,591
$62,408
$60,540
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions