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

   	Worst Case	Base Case	Best Case
   Sales quantity	10,000	13,500	17,000
   Sales price per unit	$14.00	$16.50	$18.00
   Variable cost per unit	$6.90	$5.20	$5.60
   Fixed cost	$15,000.00	$18,000.00	$21,000.00

   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?

   		$97,958
   		$89,396
   		$92,438
   		$103,101
   		$85,600