You Are Analyzing a Project and Have Developed the Following

question 83

Multiple Choice

You are analyzing a project and have developed the following estimates.The depreciation is $17,340 a year and the tax rate is 34 percent.What is the best-case operating cash flow? $$\begin{array} { | l | r | r | r | } \hline & \text { Base-Case } & \text { Lower Bound } & \text { Upper Bound } \\\hline \text { Unit sales } & 5,200 & 4,500 & 5,900 \\\hline \text { Sales price per unit } & \$ 109 & \$ 99 & \$ 119 \\\hline \text { Variable cost per unit } & \$ 71 & \$ 69 & \$ 73 \\\hline \text { Fixed costs } & \$ 16,500 & \$ 16,000 & \$ 17,000 \\\hline\end{array}$$

• A)$190,035.60
• B)$172,695.60
• C)$167,904.00
• D)$173,799.60
• E)$166,240.00

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Definitions:

Wage-gap

is the difference in average earnings between different groups of workers, often used to discuss disparities based on gender, race, or education.

Migration Costs

Expenses and sacrifices associated with moving from one location to another, which can include monetary costs, emotional strain, and time.

Substitute Resources

Resources or inputs that can be used in place of each other in the production process.

Inelastic

Describes a situation where a change in price leads to a relatively smaller change in the quantity demanded or supplied.