Q4: A project under consideration costs $750,000, has a five-year life and no savage value. Depreciation is straight line to zero. The required return is 17 per cent and the tax rate is 21%. Sales are projected at 1.000 units a year. Price per unit is 2,500, variable cost is $1,500 and fixed costs are $200,000 a year. Suppose the unit sales, price, variable cost and fixed cost projections are accurate to 5 per cent. Calculate EBIT and what is the best-case operating cash flow? 7 Marks