Question: (Questions 11 to 13 use the same data input). A company has a proposed project that will generate sales of 3,000 units annually at a
(Questions 11 to 13 use the same data input). A company has a proposed project that will generate sales of 3,000 units annually at a selling price of $30.00 each. The fixed costs are $20,000 and the variable costs per unit are $15. The project requires $72,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the three-year life of the project. The after-tax salvage value of the fixed assets is 0 and the tax rate is 21 percent. The initial investment in net working capital is $20,000. What is the cash flow from assets at the end of year three of the project? $31,900 $44,790 O $11,900 -$41,100
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