Question
You are analyzing a project and have developed the following estimates. The depreciation is $11,000 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 $11,000 a year and the tax rate is 34 percent. What is the worst-case operating cash flow?
a. -$2,509 b. $10,098 c. $21,098 d. $11,098
| Base Case | Lower Bound | Upper Bound | |
| Unit Sales | 5,700 | 4,900 | 6,200 |
| Sales Price | $75 | $66 | $77 |
| VC/unit | $47 | $45 | $49 |
| Fixed Costs | $51,000 | $44,000 | $57,000 |
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Precalculus
Authors: Michael Sullivan
9th edition
321716835, 321716833, 978-0321716835
