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You are analyzing a project and have developed the following estimates. The depreciation is $4,300 a year and the tax rate is 31.4 percent. What
You are analyzing a project and have developed the following estimates. The depreciation is $4,300 a year and the tax rate is 31.4 percent. What is the worst case operating cash flow?
| Base | Lower Bound | Upper Bound |
Unit Sales | 2,546 | 2,197 | 2,948 |
Price Per Unit | $34 | $27 | $40 |
Variable Cost Per Unit | $21 | $15 | $31 |
Fixed Costs | $9,800 | $6,400 | $10,700 |
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