What is operating cash flow under the base case scenario

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Reference no: EM131911042

Company B is analyzing a proposed project. The company expects to sell 7,800 units, plus or minus 2 percent. The expected variable cost per unit is $10 and the expected fixed costs are $275,000. The fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. The depreciation expense is $64,000. The tax rate is 34 percent. The sales price is estimated at $62 a unit, plus or minus 4 percent. If we don’t ignore tax, what is the operating cash flow under the base case scenario?

Reference no: EM131911042

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