You are analyzing a project and have developed the following estimates.The depreciation is $1,020 a year and the tax rate is 35 percent.What is the worst-case operating cash flow? $$\begin{array} { | l | r | r | r | }
\hline & \text { Base-Case } & \text { Lower Bound } & \text { Upper Bound } \
\hline \text { Unit sales } & 1,300 & 1,150 & 1,450 \
\hline \text { Sales price per unit } & \$ 19 & \$ 16 & \$ 22 \
\hline \text { Variable cost per unit } & \$ 12 & \$ 10 & \$ 14 \
\hline \text { Fixed costs } & \$ 1,400 & \$ 1,350 & \$ 1,450 \
\hline
\end{array}$$

Question

You are analyzing a project and have developed the following estimates.The depreciation is $1,020 a year and the tax rate is 35 percent.What is the worst-case operating cash flow? $$\begin{array} { | l | r | r | r | } 
\hline & \text { Base-Case } & \text { Lower Bound } & \text { Upper Bound } \
\hline \text { Unit sales } & 1,300 & 1,150 & 1,450 \
\hline \text { Sales price per unit } & \$ 19 & \$ 16 & \$ 22 \
\hline \text { Variable cost per unit } & \$ 12 & \$ 10 & \$ 14 \
\hline \text { Fixed costs } & \$ 1,400 & \$ 1,350 & \$ 1,450 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of You are analyzing a project and have developed the following estimates.The depreciation is $1,020 a year and the tax rate is 35 percent.What is the worst-case operating cash flow? $$\begin{array} { | l | r | r | r | } 
\hline & \text { Base-Case } & \text { Lower Bound } & \text { Upper Bound } \
\hline \text { Unit sales } & 1,300 & 1,150 & 1,450 \
\hline \text { Sales price per unit } & \$ 19 & \$ 16 & \$ 22 \
\hline \text { Variable cost per unit } & \$ 12 & \$ 10 & \$ 14 \
\hline \text { Fixed costs } & \$ 1,400 & \$ 1,350 & \$ 1,450 \
\hline
\end{array}$$

You Are Analyzing a Project and Have Developed the Following