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Rock Haven has a proposed project that will generate sales of 1,815 units annually at a selling price of $29 each. The fixed costs are
Rock Haven has a proposed project that will generate sales of 1,815 units annually at a selling price of $29 each. The fixed costs are $16,400 and the variable costs per unit are $8.75. The project requires $32,200 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 $8,300 and the tax rate is 35 percent. What is the operating cash flow? $9,941
$16,047
$24,500
$19,428
$10,412
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