You are analyzing a project and have developed the following estimates. The depreciation is $88,000 a year and the tax rate is 34 percent. What is the worst case operating cash flow? Projections Base Case Lower Bound Upper Bound unit sales 2,500 2,200 2,800 price per unit $190 $180 $200 variable cost per unit $120 $100 $140 fixed costs $25,000 $23,500 $26,500 Select one: O a. C. $74,220 O b. E. $76,080 O c. B. $73,680 O d. D. $75,620 O e. A. $70,510

You are analyzing a project and have developed the following estimates. The depreciation is $88,000 a year and the tax rate is 34 percent. What is the worst case operating cash flow? Projections Base Case Lower Bound Upper Bound unit sales 2,500 2,200 2,800 price per unit $190 $180 $200 variable cost per unit $120 $100 $140 fixed costs $25,000 $23,500 $26,500 Select one: O a. C. $74,220 O b. E. $76,080 O c. B. $73,680 O d. D. $75,620 O e. A. $70,510

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 5P

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