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Rock Haven has a proposed project with a 9-year life that is estimated to bring in...

Rock Haven has a proposed project with a 9-year life that is estimated to bring in sales sales of 8,700 units each year at a price of $74 per unit. The variable cost is $45 per unit. The fixed assets required for the project have a cost $301,000. They will be depreciated on a straight-line basis over the life of the project with no salvage value. The project has fixed costs estimated to be $180,000 annually. The tax rate is 35 percent. Calculate the sensitivity of the operating cash flow to a $1 change in the per unit sales price?

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