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Rondos Renegades is analyzing a proposed project. The company expects to sell 2,400 units, +/- 4 percent. The expected variable cost per unit is $280

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Rondos Renegades is analyzing a proposed project. The company expects to sell 2,400 units, +/- 4 percent. The expected variable cost per unit is $280 and the expected fixed costs are $495,000. Cost estimates are considered accurate within a plus or minus 2 percent range. The depreciation expense is $95,000. The sales price is estimated at $740 per unit, plus or minus 5 percent. What is the sales revenue under the best case scenario? Multiple Choice: $1,776,000 $1,592,490 $1,939,392 $1,897,896 $1,799,242.00 1 A 9-year project is expected to provide annual sales of $150,000 with costs of $79,000. The equipment necessary for the project will cost $311,850 and will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/-10 percent. The tax rate is 21 percent. What is the annual operating cash flow for the best-case scenario? Multiple Choice $76,251.20 $81,457.50 $63,366.50 $83,872.00 $92,35070 L Jackson Co. is analyzing a project with anticipated sales of 7,200 units, plus or minus 2 percent. The variable cost per unit is $10 +/-3 percent and the expected fixed costs are $210,000 plus or minus 2 percent. The sales price is estimated at $55 a unit, plus or minus 3 percent. The depreciation expense is $62,000 and the tax rate is 21 percent. What is the earnings before interest and taxes under the best case scenario? Multiple Choice $68,492.80 $52,000.00 $77,000.80 $78,065.50 $91,050.60 0

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