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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