1. Kenora Industries is analyzing a new project. They have gathered the following data:

   	Worst Case	Base Case	Best Case
   Sales quantity	8,500	10,000	12,000
   Sales price per unit	$9.25	$9.75	$10.25
   Variable cost per unit	$4.90	$5.10	$5.50
   Fixed cost	$14,000.00	$17,000.00	$20,000.00

   Initial requirement for equipment: $140,000 Depreciation: Straight-line to zero over the four-year life of the project with no salvage value. Required rate of return: 15% Marginal tax rate: 35% What is the operating cash flow under the base-case scenario? show all calculations

   	a.	$33,975
   	b	$24,672
   	c	$31,300
   	d	$29,675
   	e	$28,403