Question: Question 2 (2.5 points) Precise Machinery is analyzing a proposed project. The company expects to sell 4,000 units, give or take 5 percent. The
Question 2 (2.5 points) Precise Machinery is analyzing a proposed project. The company expects to sell 4,000 units, give or take 5 percent. The expected variable cost per unit is $221.00 and the expected fixed costs are $500,650. Cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $109,650. The sales price is estimated at $641.75 per unit, give or take 5 percent. The tax rate is 35 percent. The company is conducting a sensitivity analysis on the sales price per unit using a sales price estimate of $652.34. What is the operating cash flow based on this analysis? $735,853 $798,774 $765,756 $834,439 $714,897
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