Abc company has a proposed project that will generate sales


ABC Company has a proposed project that will generate sales of 403 units annually at a selling price of $288 each. The fixed costs are $6,795 and the variable costs per unit are $80. The project requires $39,521 of equipment that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. That is, depreciation each year is $39,521/4. The tax rate is 37 percent. What is the operating cash flow?

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Business Economics: Abc company has a proposed project that will generate sales
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