Assume a Project Has a Sales Quantity of 7,400 Units

question 97

Multiple Choice

Assume a project has a sales quantity of 7,400 units, ±6 percent and a sales price of $59 a unit, ±1 percent. The expected variable cost per unit is $13, ±3 percent, and the expected fixed costs are $214,000, ±2 percent. The depreciation expense is $63,000 and the tax rate is 23 percent. What is the operating cash flow under the best-case scenario?

• A) $136,759
• B) $118,470
• C) $145,705
• D) $134,208
• E) $124,220

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Definitions:

Probability

A scale from 0 to 1 that measures how likely an event will take place.

Basketball Player

An individual who participates in the sport of basketball, either professionally or recreationally.

Guesses

Attempts at answering or making predictions without sufficient information or knowledge on the subject.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.