Question: Please only answer the question if you are 100% sure of answer!!! ABC Company has a proposed project that will generate sales of 483 units

Please only answer the question if you are 100% sure of answer!!!

ABC Company has a proposed project that will generate sales of 483 units annually at a selling price of $273 each. The fixed costs are $5,359 and the variable costs per unit are $45. The project requires $35,027 of equipment that will be depreciated on a straight-line basis to a zero book value over the 10-year life of the project. That is, depreciation each year is $35,027/10. The tax rate is 32 percent. What is the operating cash flow?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!