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Rock Haven has a proposed project that will generate sales of 1,716 units annually at a selling price of $25 each. The fixed costs are
Rock Haven has a proposed project that will generate sales of 1,716 units annually at a selling price of $25 each. The fixed costs are $10,478 and the variable costs per unit are $6.28. The project requires $30,449 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The salvage value of the fixed assets is $6,574 and the tax rate is 27 percent. What is the operating cash flow (in $) for year 4?
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