Question
You are analyzing a project and have developed the following estimates. The depreciation is $19,800 a...
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 $44 $50
Fixed Costs $23,000 $21,500 $24,500
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