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Rock Haven has a proposed project that will generate sales of 1,935 units annually at a selling price of $37 each. The fixed costs are
Rock Haven has a proposed project that will generate sales of 1,935 units annually at a selling price of $37 each. The fixed costs are $20,400 and the variable costs per unit are $11.95. The project requires $37,000 of flxed 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 $9,900 and the tax rate is 21 percent. What is the operating cash flow? Multiple Choice $29,947 $24,119 $7,838 $26,450 $20,234
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