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You Are Analyzing a Project and Have Developed the Following

Question 87

Multiple Choice

You are analyzing a project and have developed the following estimates: unit sales = 2,600, price per unit = $109, variable cost per unit = $67, fixed costs per year = $38,000.The depreciation is $12,000 a year and the tax rate is 34 percent.What effect would the sale of one more unit have on the operating cash flow?


A) $24.18
B) $16.66
C) $13.10
D) $27.72
E) $15.70

Correct Answer:

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