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Rock Haven has a proposed project that will generate sales of 1,770 units annually at a selling price of $26 each. The fixed costs are
Rock Haven has a proposed project that will generate sales of 1,770 units annually at a selling price of $26 each. The fixed costs are $14,900 and the variable costs per unit are $7.55. The project requires $30,400 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 $7,700 and the tax rate is 21 percent. What is the operating cash flow?
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