Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are given the following projections for a project: Units sold per year: 61,798 Price per unit: $ 5 Variable cost per unit: $ 2
You are given the following projections for a project:
Units sold per year: | 61,798 |
Price per unit: | $ 5 |
Variable cost per unit: | $ 2 |
Fixed costs per year: | $ 13,387 |
Initial cost of manufacturing equipment: | $ 99,975 |
Project life (years): | 5 |
Initial net working capital: | $ 10,915 |
Tax rate: | 21% |
The cost of manufacturing equipment will be depreciated straight-line to zero over the projects life.
Note: units sold per year, price per unit, variable cost per unit, fixed cost per year remain the same for each year of the project.
What is the operating cash flow (OCF) for year 5 of the project?
Round your answer to 2 decimal places (e.g. 125.74632 = 125.75).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started