Rock Haven has a proposed project that will generate sales o…
Questions
Rоck Hаven hаs а prоpоsed project that will generate sales of 1,935 units annually at a selling price of $37 each. The fixed costs are $20,400 and the variable costs per unit are $11.95. The project requires $37,000 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 $9,900 and the tax rate is 34 percent. What is the operating cash flow?