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Rock Haven has a proposed project that will generate sales of 1,845 units annually at a selling price of $31 each. The fixed costs are
Rock Haven has a proposed project that will generate sales of 1,845 units annually at a selling price of $31 each. The fixed costs are $17,400 and the variable costs per unit are $9.55. The project requires $33,400 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 $8,700 and the tax rate is 34 percent.
What is the operating cash flow?
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