Question: Please help and explain how to do this question Bad Company has a new 4-year project that will have annual sales of 8,500 units. The

Please help and explain how to do this question

Please help and explain how to do this question Bad Company has

Bad Company has a new 4-year project that will have annual sales of 8,500 units. The price per unit is $20.00 and the variable cost per unit is $7.75. The project will require fixed assets of $95,000, which will be depreciated on a 3-year MACRS schedule. The annual depreciation percentages are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. Fixed costs are $35,000 per year and the tax rate is 35 percent. What is the operating cash flow for Year 3? Multiple Choice

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