What is the operating cash flow

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Rock Haven has a proposed project that will generate sales of 1980 units annually at a selling price of $40 each. The fixed costs are $21,900 and the variable costs per unit are $13.15. The project requires $38,800 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. The salvage value of the fixed assets is $10,500 and the tax rate is 34 percent. What is the operating cash flow?

Reference no: EM132481253

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