1. Wolverine Widgets considering a new investment that has projected unit sales in year 1 of 1,000 units. The sales price per unit is $80, variable costs are 60% of sales, and fixed costs are $200,000; depreciation is 75,000, and the tax rate is 21 percent.
   1. What is the projected operating cash flow for year 1?[4 points]

2. What is the Depreciation Tax Shield in year 1? [3 points]

3. How sensitive is the operating cash flow to a $1 change in the per unit sales price? [3 points]

4. You feel that both sales and variable costs are accurate to +/- 15%. What is the annual operating cash flow for the best-case scenario? [3 points]