A 7 - year project is expected to generate annual sales of 9 , 4 0 0
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Question:
A year project is expected to generate annual sales of units at a price of $ per unit and a variable cost of $ per unit. The equipment necessary for the project will cost $ and will be depreciated on a straightline basis over the life of the project. Fixed costs are $ per year and the tax rate is percent. How sensitive is the operating cash flow to a $ change in the per unit sales price?
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