You are analyzing a project and have developed the following estimates. The depreciation is $4,300 a...

Transcribed Image Text:

You are analyzing a project and have developed the following estimates. The depreciation is $4,300 a year and the tax rate is 35.5 percent. What is the worst case operating cash flow? Base Lower Bound Upper Bound Unit Sales 2,566 2,245 2,892 Price Per Unit $32 $27 $40 Variable Cost Per $24 $19 $28 Unit Fixed Costs $8,500 $7,400 $10,700 Answer Tolerance: + $ 125 You are analyzing a project and have developed the following estimates. The depreciation is $4,300 a year and the tax rate is 35.5 percent. What is the worst case operating cash flow? Base Lower Bound Upper Bound Unit Sales 2,566 2,245 2,892 Price Per Unit $32 $27 $40 Variable Cost Per $24 $19 $28 Unit Fixed Costs $8,500 $7,400 $10,700 Answer Tolerance: + $ 125