Question
You are analyzing a project and have developed the following estimates. The depreciation is $7,000 a year and the tax rate is 25.8 percent. What
You are analyzing a project and have developed the following estimates. The depreciation is $7,000 a year and the tax rate is 25.8 percent. What effect would $1 change in variable cost per unit have on the operating cash flow?
|
| Base Case Cash Flow |
| Unit Sales | 2,293 |
| Price per Unit | $30 |
| Variable Cost per Unit | $26 |
| Fixed Costs | $8,900
|
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Finance For Nonfinancial Managers Beginners Handbook For Finance
Authors: Murugesan Ramaswamy
1st Edition
1516973801, 978-1516973804
