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Rock Haven has a proposed project that will generate sales of 2,010 units annually at a selling price of $42 each. The fixed costs are
Rock Haven has a proposed project that will generate sales of 2,010 units annually at a selling price of $42 each. The fixed costs are $22,900 and the variable costs per unit are $13.95. The project requires $40,000 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 $10,900 and the tax rate is 21 percent. What is the operating cash flow?
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