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sell for $50 per unit, variable costs will be $30 per unit, annual fixed costs will be $30,000, and 3. A firm has made
sell for $50 per unit, variable costs will be $30 per unit, annual fixed costs will be $30,000, and 3. A firm has made the following projections for an upcoming project: The firm's output will expected quantity of sales is 4,000. Depreciation is certain to be $10,000 per year, and the tax rate is 21%. a. Calculate the annual operating cash flow for the base case. b. The projected numbers are thought to be accurate to + or - 20%. Calculate the operating cash flow for the worst case scenario. c. How would you use scenario analysis to help decide whether to pursue this project? What is your advice on whether this project is worth doing or not?
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