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QUESTION 15 Assume a project has a sales quantity of 8,000 units, plus or minus 5 percent and a sales price of $70 a unit,

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QUESTION 15 Assume a project has a sales quantity of 8,000 units, plus or minus 5 percent and a sales price of $70 a unit, plus or minus 1 percent. The expected variable cost per unit is $123 percent and the expected fixed costs are $300,000 plus or minus 2 percent. The depreciation expense is $70,000. The tax rate is 34 percent. What is the operating cash flow under the best-case scenario? A$192,002.89 B. $168,470.15 $157,188.64 $148,755.09 $175,056.67 QUESTION 16 Projects A and B have identical expected lives and identical initial cash outflows (costs), but their future cash flows are different. The future cash flows are such that, if we increase the required rate of return (r), the NPV of project A decreases faster than that of project What can we say about the future cash flows of the two projects? NPV(S) r(%) AMore of Project A's cash flows occur in the later years. 8 All of project B's future cash flows are larger than those of project A. All of project A's future cash flows are larger than those of project B We must have more informaion to be able to say anyihing about cash flows

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