You Are Analyzing a Project and Have Developed the Following

question 102

Multiple Choice

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? $$\begin{array} { | l | r | r | r | } \hline & \text { Base-Case } & \text { Lower Bound } & \text { Upper Bound } \\\hline \text { Unit sales } & 1,300 & 1,150 & 1,450 \\\hline \text { Sales price per unit } & \$ 19 & \$ 16 & \$ 22 \\\hline \text { Variable cost per unit } & \$ 12 & \$ 10 & \$ 14 \\\hline \text { Fixed costs } & \$ 1,400 & \$ 1,350 & \$ 1,450 \\\hline\end{array}$$

• A)-$110.50
• B)-$64.10
• C)$909.50
• D)$209.00
• E)$660.50

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Economic Interests

The financial benefits and motivations influencing the decisions of individuals or organizations.

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The specific goals or concerns related to politics and governance that individuals or groups prioritize and pursue.

Scientific Certainty

The degree of confidence attributed to findings from scientific research, indicating the likelihood that these findings are accurate and reliable.

True

In accordance with fact or reality, not false or erroneous.