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Problem 1 2 - 1 1 Operating Cash Flow ( LG 1 2 - 3 ) You are evaluating a project for The Farstroke golf
Problem Operating Cash Flow LG
You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty slice. You estimate the sales price of The
Farstroke to be $ per unit and sales volume to be units in year ; units in year ; and units in year The project
has a year life. Variable costs amount to $ per unit and fixed costs are $ per year. The project requires an initial
investment of $ in assets, which can straightline depreciate to zero. The actual market value of these assets at the end of year
is expected to be $ NWC requirements at the beginning of each year will be approximately percent of the projected sales
during the coming year. The tax rate is percent and the required return on the project is percent.
What is the operating cash flow for the project in year
Note: Enter your answer as a whole number.
Operating cash flow
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