Rock Haven Has a Proposed Project That Will Generate Sales

question 98

Multiple Choice

Rock Haven has a proposed project that will generate sales of 1,680 units annually at a selling price of $22 each. The fixed costs are $12,700 and the variable costs per unit are $5.95. The project requires $28,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. The salvage value of the fixed assets is $6,900 and the tax rate is 34 percent. What is the operating cash flow for year four?

• A) $11,794
• B) $12,417
• C) $14,258
• D) $16,348
• E) $16,971

---

Definitions:

Perineal Care

Cleaning the genitals and anal area to prevent infection, often part of personal hygiene or postoperative care routines.

Plaque

A sticky deposit on teeth in which bacteria proliferate, leading to dental cavities and gum disease; also refers to fatty deposits inside arteries that can lead to heart disease.

Tartar

A hard deposit that forms on teeth when plaque accumulates and mineralizes, leading to various dental problems.

Oral Cavity

The mouth, including the lips, teeth, gums, and the anterior portion of the tongue, where digestion begins.