You Are Analyzing a Project and Have Developed the Following

question 14

Multiple Choice

You are analyzing a project and have developed the following estimates: unit sales = 3,100,price per unit = $215,variable cost per unit = $115,fixed costs = $164,000.The depreciation is $59,000 a year and the tax rate is 35 percent.What effect would the sale of one more unit have on the operating cash flow?

• A)$60.90
• B)$61.40
• C)$61.80
• D)$65.00
• E)$65.70

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Definitions:

Morally

Pertaining to principles of right and wrong behavior and the goodness or badness of human character.

Systematic Thinking

An approach to problem-solving that involves breaking down complex issues into manageable parts and analyzing them in a structured and logical manner.

Moral Consequences

The ethical outcomes or implications of an action, reflecting its rightness or wrongness in terms of values and principles.

Rational Decision-making Model

A systematic process of making decisions that are logically sound, based on available information and aimed at achieving the best possible outcome.