Question: The variable cost per unit for a proposed project is $7.43 and the annual fixed costs are $25,900. These costs can vary by 2 percent.

The variable cost per unit for a proposed project is $7.43 and the annual fixed costs are $25,900. These costs can vary by 2 percent. Annual depreciation is $12,990 and the tax rate is 21 percent. The sale price is $12 a unit, 5 percent. If the firm bases its sensitivity analysis on the expected outcome, what will be the operating cash flow for a sensitivity analysis of 9,950 units?

OCF for 9,950 units =

Question 2

What will be the operating cash flow for a sensitivity analysis of 9,850 units?

OCF for 9,850 units

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