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Rock Haven has a proposed project that will generate sales of 1 , 7 4 0 units annually at a selling price of $ 2

Rock Haven has a proposed project that will generate sales of 1,740 units annually at a selling price of $24 each. The fixed costs are $13,900 and the variable costs per unit are $6.75. The project requires $29,200 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. The salvage value of the fixed assets is $7,300 and the tax rate is 40 percent. What is the operating cash flow?
Multiple Choice
$21,349
$12,589
$16,093
$9,366
$6,749

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