Question: [Extra 3 points from chapter 7] Assume a project has these estimated values: Sales quantity of 4,000 units, plus or minus 5 percent; variable cost
![[Extra 3 points from chapter 7] Assume a project has these](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/10/66ffc02eb40ba_91066ffc02e31401.jpg)
[Extra 3 points from chapter 7] Assume a project has these estimated values: Sales quantity of 4,000 units, plus or minus 5 percent; variable cost per unit of $17, plus or minus 3 percent; fixed costs of $45,000, plus or minus 2 percent; depreciation of $17,000; and a sales price of $40 a unit, plus or minus 10 percent. The tax rate is 34 percent. The company bases its sensitivity analysis on the expected case scenario. (Answer format: keep the integer, no comma, and no dollar sign. e.g., 1234.6 >> 1235) 1) Fill in the blanks 2) What will be the operating cash flow under best-case scenario and worse- case scenario ? Hint: OCF=(NIdepreciation)(1 tax rate )+ depreciation, where NI= revenue cost
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
