Reference no: EM131054559
ABC has a proposed project which will generate sales of 179 units at a selling price of $226 each. The fixed costs are $11,145 and the variable costs per unit are $83. The project requires $151,014 of machinery which will be depreciated on a straight-line basis over the 5-year life of the project. That is, depreciation each year is $151,014/5.The tax rate is 39%. What is the operating cash flow for year 5?
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: ABC has a proposed project which will generate sales of 179 units at a selling price of $226 each. The fixed costs are $11,145 and the variable costs per unit are $83. The project requires $151,014 of machinery which will be depreciated on a straight..
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