Rock Haven has a proposed project that will generate sales of $1,875$ units annually at a selling price of $$33$ each. The fixed costs are $$18,400$ and the variable costs per unit are $$10\mathrm{.}35.$ The project requires $$34,600$ 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 $$9,100$ and the tax rate is $40$ percent. What is the operating cash flow?

Multiple Choice