You are analyzing a BLO Corporation project and have developed the following estimates. The depreciation is $15,000 a year and the tax rate is 21 percent. How would a 4% reduction in the price per unit impact the base case operating cash flow?

You are analyzing a BLO Corporation project and have developed the following estimates. The depreciation is $15,000 a year and the tax rate is 21 percent. How would a 4% reduction in the price per unit impact the base case operating cash flow?

Year One Projections	Base Case	Lower Bound	Upper Bound
Unit sales	50,000	45,000	55,000
Price per unit	$ 50	$ 40	$ 60
Variable costs per unit	$ 30	$ 25	$ 35
Fixed Costs	$150,000	$100,000	$200,000