A Project Has Projected Sales of 25,600 Units with a Selling

question 67

Multiple Choice

A project has projected sales of 25,600 units with a selling price of $4.95 each. Annual fixed costs are $31,000 with variable costs of $2.18 per unit. The project has a three-year life and requires an initial investment of $62,900 for equipment. The equipment will be depreciated straight-line to zero over three years. The sales price has a plus-minus range of 10% while the cost estimates are expected to vary within a 5% range. The quantity has a plus-minus range of 8%. The tax rate is 34%. Under the best-case scenario, what is the operating cash flow?

• A) $22,268
• B) $28,292
• C) $42,867
• D) $43,235
• E) $49,259

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Definitions:

Community-Oriented Nursing

A branch of nursing focused on improving the health and well-being of the community by offering preventive and primary care services.

Public Health Nursing

A specialized field of nursing that focuses on promoting and protecting the health of populations through community-based strategies.

Community Health Systems

A network of healthcare providers and organizations that offer services to meet the health needs of community members.

Validate Data

The process of checking or confirming the accuracy and reliability of data, often used in research, healthcare, and information management.