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Rock Haven Has a Proposed Project That Will Generate Sales

question 49

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Rock Haven has a proposed project that will generate sales of 1,840 units annually at a selling price of $31 each.The fixed costs are $13,400 and the variable costs per unit are $7.47.The project requires $32,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the four-year life of the project.The salvage value of the fixed assets is $8,500 and the tax rate is 35 percent.What is the operating cash flow for Year 4?


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