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Rock Haven has a proposed project that will generate sales of 1,995 units annually at a selling price of $41 each. The fixed costs are
Rock Haven has a proposed project that will generate sales of 1,995 units annually at a selling price of $41 each. The fixed costs are $22,400 and the variable costs per unit are $13.55. The project requires $39,400 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 $10,700 and the tax rate is 35 percent. What is the operating cash flow? Multiple Choice $34,826 $17,588 O $28.620 O $14,774 $24,483
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