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Rock Haven has a proposed project that will generate sales of 2,025 units annually at a selling price of $43 each. The fixed costs are
Rock Haven has a proposed project that will generate sales of 2,025 units annually at a selling price of $43 each. The fixed costs are $23,400 and the variable costs per unit are $14.35. The project requires $40,600 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 $11,100 and the tax rate is 34 percent. What is the operating cash flow?
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