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You are analyzing a project and have developed the following estimates. The depreciation is $7,000 a year and the tax rate is 39.7 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 39.7 percent. What effect would $1 change in price per unit have on the operating cash flow?
| Base Case Cash Flow |
Unit Sales | 2,247 |
Price per Unit | $32 |
Variable Cost per Unit | $26 |
Fixed Costs | $7,400 |
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