What is the operating cash flow

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Reference no: EM131608374

A project has a 7-year life and an initial investment of $228,700 in equipment. The equipment will be depreciated straight-line to zero over 7 years. Fixed costs are $124,600. Variable costs are $8.16 per unit. Sales are estimated at 54,500 units at an average price of $11.99. The estimated ranges of each variable are: sales quantity 15%; sales price 2%; variable cost 10%; and fixed costs 4%.The tax rate is 35%. Under the worst-case scenario, what is the operating cash flow?

Reference no: EM131608374

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