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You are analyzing a project and have developed the following estimates. The depreciation is $19,800 a year and the tax rate is 34 percent. What

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You are analyzing a project and have developed the following estimates. The depreciation is $19,800 a year and the tax rate is 34 percent. What is the best case operating cash flow? Base Case Lower Bound Upper Bound Unit Sales 4,400 3,800 4,500 Sales Price $62 $59 $65 Variable Costs per Unit $47 $50 Fixed Costs $23.000 $21.500 $24,500 $44 Select one: O a $54,912 O b. $59,932 Oc$53,200 O d. $35.112 e $37.092 Soft and Cuddly is considering a new toy that will produce the following cash flows. Should the company produce this toy if the firm requires a 15 percent rate of return? Year Cash Flow 0 -$ 30,100 1 26.000 2 9.000 a. Select one: No: the project's rate of return is 12.87 percent O b. Yes: the project's rate of return is 11.47 percent OcYes: the project's rate of return is 10.21 percent O d. No: the internal rate of return is zero percent O e. No; the project's rate of return is 10.21 percent

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